Alan Davies launched Hop in the Vine in Bridport last May, after more than three years running the store as a Threshers branch.
But he said local competition has made the shop unviable, especially since the opening of a nearby Spar store.
He told the Bridport News: “We are closing mostly because of the Spar shop. The economic climate hasn’t helped.
“It is not the fact we couldn’t compete, because our prices were cheaper. When the supermarket was shut we would get busy.
“But if people wanted cheese and tea and coffee and milk while they were in there they picked up the rest too.
“People’s shopping habits have changed. People like to get everything in one go.”