Four employees at Goulburn's Sanity store will lose their jobs when the outlet closes next month.
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It is one of 50 'bricks and mortar' stores to close around Australia by the end of April, 2023.
READ MORE: Music retailer Sanity to shut all its stores
The company announced the closures on Wednesday, blaming consumer shift to digital and visual music and diminishing physical content to sell to customers.
Owner Ray Itaoui said it was "impossible to continue."
"Our online business - sanity.com.au - will continue to operate, and will service the many loyal customers the brand has continued to be dedicated to over the decades," he said.
"Our priority right now is to ensure each of our team members knows exactly what this means for their career and employment future."
Workers at the Goulburn outlet received notice of retrenchments earlier this week. The shop will close on February 12.
Employees were unable to speak to the media but Sanity's general manager, Jamie Barbour, said the company always did its best to absorb the team into other stores
"Due to distance from our online store, it is difficult to retain as many team members as we would like to," he said.
The Goulburn outlet was busy on Friday morning but Sanity has suffered declining patronage across the board.
Goulburn Chamber of Commerce president Darrell Weekes said it appeared to be the victim of technology advances.
"The same as Blockbuster Video was killed by Netflix, Sanity is being killed by Spotify," he said.
"The loss of yet another Goulburn business in Goulburn is always concerning, particularly the loss of jobs."
Civic Video in Auburn Street closed its doors in 2016, also the victim of the digital age. It had been there for more than 20 years.
Brett Blundy founded Sanity in 1980. Mr Itaoui, who purchased the business 13 years ago, said Sanity had become "one of Australia's most respected and recognisable retailers."
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"The Sanity brand became synonymous with the go-to place to get anything that mattered in the world of music: from vinyl, to CDs and DVDs, hardware, accessories, and of course face to face advice on everything musical," he said.
"The business prospered and remained successful for many years, thanks to the dedication and commitment of our entire team."
Without this, the brand wouldn't have lasted as long as it did, he said.
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