Countdown in Waihi will close down next month because the building has been deemed unsafe - costing 41 people their jobs.
Staff were informed of the closure at a staff meeting on Wednesday.
Countdown's national trading manager Ryan McMullen said the decision was made because of the level of repairs and maintenance required on the site and the building.
"The advice we've been given is that the supermarket and the site will need to be extensively repaired or redeveloped, and sadly it just isn't sustainable for us to stay here.
"The foundations and floor have moved, which will deteriorate further over time," he said.