After trading successfully for seven years the Breaffy Road hardware store will close its doors for the final time at the end of this month.

"There's a downturn in economic activities. Woodies has affected the town and now Homebase is coming in, so a decision was made to get out, " a spokesman at the store said last week.

Last March, Woodies opened a 40,000sq ft store and garden centre at the Castlebar retail and business park, also on Breaffy Road. A new Homebase DIY store is currently under construction just off the McDonald's roundabout in the town and is expected to open in June.

"The town is not big enough, with the move of big multinationals to the town.

The independent stores are being hit. The day of the independent retailer is gone, " the spokesperson said.

The store is part of Arro DIY Ltd, a group of over 40 independently owned hardware shops located throughout Ireland. Arro DIY Ltd. is a sister company of National Hardware Ltd, which sources DIY and builders' products for the stores. The shops sell a range of own-branded products including bathroom accessories, garden tools and ironmongery.

"I can't comment on the reasons why the directors of the Arro store in Castlebar decided to close down their business, " says National Hardware chief executive, John Stone. "In general, our group has enjoyed success and last year alone we opened three new Arro stores.

"We're affiliated to Ace Hardware in the United States, where there are over 5,000 independent stores competing quite well with the likes of Home Depot, Lowes, Walmart, etc. Very often a new entrant will grow the market and independent DIY stores can compete if they focus on what they are good at - service, product knowledge and a competitive offering."

Local independent councillor Michael Kilcoyne, who is also chairman of the Consumers' Association of Ireland, rejects the claim that stiff competition is stymieing business for Castlebar traders. "Arro appears to be saying that Woodies is responsible for the shutting down of its store. I don't accept that. There seems to be an implication in that claim that the local council is in some way responsible because we allow big businesses into the town.

"We operate in an open society. Anybody who wants to develop or open a property or business in Castlebar is welcome to do so. It's a market economy. It's the survival of the fittest.

"I know customers do shop around and they do like to try out new stores when they first open. But it's my view that they always come back to where they get value for money. The bottom line is, if you give the customer good service, the customer will stay with you."

Kilcoyne acknowledged that some small businesses can face significant problems attempting to compete with bigger retailers. "I know that, for example, car-parking facilities can be an issue. . . Woodies probably has a couple of hundred spaces while Arro would have a maximum of around 40. But I don't think location is an issue.

"There are now more small shops in Castlebar than there ever were. Take filling stations, for example. They've upgraded their retail units.

They're operating to a high standard and trading successfully. Look at Casey's petrol station. They're across the roundabout from Tesco and Dunnes. But they've expanded their store and they're managing to operate successfully."