Chippenahm's Costcutter closed last Sunday after being run by three generations of the Terrell family.
They have had the shop in Conway Road, off Queen’s Crescent, for 32 years.
Kath Terrell, 76, is retiring but will continue to live above the shop.
She said: “All my family have worked here at some time.
“It is emotional, I’ve been very happy here and made a lot of friends and wonderful customers. It’s not just staff, we are really like a family.”
When Mrs Terrell first started, it was a Spar. Since then the shop has extended next door and more than doubled in size.
Mrs Terrell’s son Mark Terrell, 46, who lives in Chippenham town centre, said he had seen a lot of changes since he started working there aged 16.
“I joined the business from school when they were still bagging up potatoes themselves,” he said.
His brother Richard runs the Costcutter in Corsham, which remains open.
The Terrells will lease the shop to the Co-op, which is due to open next Thursday.