Chairman and company founder Paul Donaghue said a final decision would be made by mid-January but none of the company's other stores in NSW or the ACT would be affected.

Mr Donaghue spoke to the shop's 30 staff yesterday and assured them their jobs would be protected within the company in the event of the Belconnen store closing.

''As a retailer, the last thing you want to do is close a store but from time to time unfortunately that is what you have to do. Sometimes you have to take a step backwards to go forwards,'' he said.

The arrival of the nearby Bunnings had taken its toll on the business but he said the company remained healthy and was actively looking at expanding to new sites within the ACT.

A location close to the city is understood to be a high priority.

The Belconnen shop is one of the company's oldest, opened in 1976 under the Paul's brand.

After a rebranding to Magnet Mart and a move to the ''big box'' warehouse format in 2002 with the opening of the Gungahlin shop, the business expanded into southern NSW, taking the total number of shops to six.

Magnet Mart closed its Albion Park shop in January this year.

Mr Donaghue said he was working on a new ''bricks and clicks'' concept that would help modernise the business with a move online.

For more, pick up a copy of today's Canberra Times