Heidi Hallett says it was a tough decision to close her store, Frog Hollow Books. (CBC)

Frog Hollow Books, an independent bookstore in downtown Halifax, is shutting down at the end of the month, citing a slumping economy and increased competition.

The owner, Heidi Hallett, told CBC News she didn't make the decision lightly.

"Gut-wrenching. I've lost a lot of sleep," Hallett said, her voice breaking. "It's been very difficult."

Hallett made the decision on Friday and notified customers about her plans on Tuesday.

Hallett said in addition to climbing rent, she faced growing competition from both online and large chain stores that have cut her shop's sales by half in the last six years. She said the past year was particularly trying.

"We had just sincerely hoped that if we could get through the summer months and get into the fall season … that we'd be able to make it through the year. But July has been miserable," Hallett said.

A customer leaves a note of support for the bookstore. (CBC)Frog Hollow Books has been around for 25 years, and Hallett has been its owner for the last 3½.

The store moved from Park Lane Mall to Brenton Street at the beginning of June. Hallett said there was an immediate increase in traffic but not enough to keep the store in business.

The bookstore will close on Aug. 22.

Bookstore owner upset

Mitzi DeWolfe, owner of Box of Delights in Wolfville, N.S., said she's "a little devastated" but not surprised Frog Hollow's closing. Like Hallett, she runs a small, independent bookstore.

"As far as I'm concerned, they've been a forerunner in promoting literacy, you know, they've given people very easy access to any number of authors over the years," DeWolfe said.

DeWolfe said independent bookstores are special because the staff can provide blockbuster hits as well as books by lesser-known authors.

She said the impending closure of Frog Hollow Books will leave a big void.