Earlier this month, the group went into consultation with the branch's staff about closing the store.
When contacted today, chief store operations officer Ian Carter confirmed it had made the decision to shut it early next year in line with the site's end of lease.
"Despite the incredible efforts of our team, over the past few years we have seen customer shopping habits change, with more customers choosing to shop in larger The Warehouse stores and online,'' he said.
That was the case in Mosgiel, with many in the area shopping at the South Dunedin branch.
"We're committed to supporting our team as best we can through this and we will be working with each of out team members to work through redeploying them to work in one of our other group stores,'' Mr Carter said.
Mosgiel is the second store the national retailer has decided to shut in Dunedin in the past year.
The Warehouse left its central Dunedin site in Maclaggan St in July. This will be redeveloped to house the Otago Regional Council.
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This is an absolute shame. This decision takes no account of the fact that Mosgiel is a growing retirement community. Older people may no longer be able to drive. South Dunedin is out of mobility scooter range. I doubt that there is a direct bus service, and using public transport is not helpful when you have bags of shopping to carry. I frequently use the Mosgiel store as it is so convenient. I will not be traveling to South Dunedin.