The future of Kirkcaldie and Stains staff is not certain.

The store announced yesterday it will be closing down next year and replaced by Australian department store giant David Jones.

Kirkcaldie and Stains Chairman Falcon Clouston says although jobs aren't guaranteed, they are not lost either.

"David Jones has expressed their intention to offer employment to the majority of our staff, and we believe this secures a brighter future for them."

Kirkcaldie and Stains currently has 192 permanent, and 78 non-permanent staff.

The store has been operating for 152 years.

Retail NZ's Mark Johnston says Wellington shoppers will benefit because there will be more, and new, choice.

"Kirks has been a very traditional department store, I think we're going to see something a little bit more modern, more vibrant with some new brands."

"David Jones investing is a real vote of confidence in the sector."

Mr Clouston says it was a difficult decision, but the right one.

"I think as a single large format store, we lacked the scale to compete with the multi-store regional and global operators."