The Salvation Army Thrift Store on Jordan Crescent in Charlottetown is closing next month.

The store has been losing about $10,000 per year, say Salvation Army officials, forcing the store to close on Oct. 18.

Capt. Jamie Locke with the Charlottetown chapter of the Salvation Army says the store has lost money ever since it opened in 2010.

"Over the course of its three year history we were losing approximately $10,000 a year, so we've accumulated a significant debt load there that we want to address now before it gets out of hand. We've already reached a significant number,” he said.

The thrift store is supposed to generate money to support programs such as the food bank, drop-in centre and men's shelter.

The plan is to reopen a new store at a location with higher visibility, run by the national office of the Salvation Army.

Staff from the Salvation Army's national head office were in Charlottetown this week to take a look at the existing operation and to start scouting new locations.

There’s some competition for second-hand stores in Charlottetown, and some customers are concerned the prices will be higher at a new location.

"I hope when it reopens they don't go too retail-oriented, that they think about the people who need it,” said Sherrie Crawford.

Pricing in the new thrift store will be up to the national head office.

"I believe that our pricing should remain very similar to where it is, and we have this mandate of serving the community while trying to generate funds for our family services," said Locke.

“I hate to see it closed because it helps so many families, not just my family. It helps so many other people that are on a fixed income like I'm on," said Caroline Osborne.

The Jordan Crescent store had six full time staff. They can apply for jobs at the new store when it opens in the spring.