United Video Masterton will no longer sell cigarettes - a decision made in a bid to discourage smoking.
Manager Tania Franklin-Hema said the store moved the cigarette display shelf out of sight in a move to discourage people buying cigarettes, and are now going to shut it completely.
"Once those last packets are gone, we won't be supporting it anymore.
"It'll be one less store that has it on display."
Associate Health minister Tariana Turia proposed new legislation earlier this week which would see tobacco sold in plain packaging with health messages rather than brands.
And in a Ministry of Health discussion paper leaked last week it was suggested raising the cost of cigarettes to $100 a pack would help the Government's goal of being smokefree by 2025.
United Video makes about 30 per cent on each packet of cigarettes, but owners Phil and Di Sutherland were prepared to take the loss of income, said Mrs Franklin-Hema.
"We're losing a bit of money, but we're making a statement and hopefully people will follow suit."
Mrs Franklin-Hema said the move has their customers in mind.
"Being a gaming and DVD store, we get a lot of children and youth in here, and it's a bad influence on them seeing it in their face all the time."
She said most of the staff are non-smokers, and she herself stopped smoking about four years ago.
"I do more stuff now, and my kids don't have to see me sucking on a smoke once an hour."
United Video team member Karyn Waitere said she supported government moves to put prices up, and she felt safer with the store not selling cigarettes. "With this price hike, there's a danger there will be more theft."
Tobacco prices have risen nearly 30 per cent in the past three years.