McNally Robinson, Canada's largest independent bookstore, is closing its downtown Calgary store on Aug. 1.

The company, based in Winnipeg, has sold the historic three-storey building on Stephen Avenue to a land-investment company, co-owner Paul McNally confirmed Thursday.

McNally Robinson's Calgary store, which opened in 2002, will close in August.
(CBC)

The bookstore said it is not looking for a new location in Calgary.

McNally blamed the closure on the costs of real estate in the downtown core, as well as high labour expenses in Alberta's boom.

"The value of the real estate over-reaches the potential of the bookselling business," McNally said in a statement. "In an average cost structure, the store would be viable and profitable. In downtown Calgary, not so much."

He said the store and its restaurant did well during weekday lunch hours, but business was comparatively quiet the rest of the week.

Simone Lee, a former book publisher and current co-owner of Pages, an independent bookstore in Calgary's Kensington neighbourhood, called news of the closure a blow for the city.

"It certainly was a space that welcomed authors and welcomed book lovers," she said. "I know from my experience working with publishers in the past what an important part it was in the promotion of their books to have that venue and that space there, so it will be a big loss."

McNally Robinson, which has locations in Winnipeg, Saskatoon and New York City, is opening a store in the Manitoba capital in a few weeks as well as in Toronto next spring.

The Calgary store opened in the Clarence Block building in September 2002. McNally said the building's new owners are looking for a new tenant.