The business which had been operating with five staff on the corner of George and St Andrew Sts, Dunedin, for the past 12 years was placed in liquidation on Monday.
Electronic transactions data released this week showed a fall in the total value of transactions in June compared with May, a further sign of a squeeze on consumer spending under the impact of rising fuel prices.
The retail transaction series, which accounted for 71 million transactions, was 0.4% lower in June, while the trend for the subset was the lowest increase recorded at 5.5% higher in June than a year earlier.
The annual rate of increase in the retail industries trend has been falling steadily since last October, when it was 8.5%.
Jonathan's Camera and Video owner Jonathan Kemp said the current market had contributed to a downturn in business.
"People are not printing photos like they used to and now cameras are dropping so low in price that the profit margins aren't as good as they used to be.
"The business has had its ups and downs, like every business, but this low has been a bit too much."
Mr Kemp said it was costing him between $80,000 and $120,000 a year to rent his premises but did not believe it was a factor in his demise.
However, he was affected by a store refit four years ago and, in hindsight, he believed he should not have done it.
"The price of our products could sustain the business four years ago, but not now."
Liquidator Trevor Laing, of Trevor Laing and Associates, said the business would continue trading as it tried to reduce stock and he tried to find someone to take over the business - either as a going concern or to buy the stock.
"I'm not too sure what the chances of that happening will be."
Despite the store being an institution in Dunedin, times were tough for those sorts of outlets as the retail chains made inroads into the digital market.
Retail chains could reduce the price of stock and give interest free terms, or a deferred payment plan, over a long period, Mr Laing said.
"The little guys, like this outlet, can't compete against that sort of stuff."
Mr Kemp agreed the future for independent retailers looked challenging.
"They will need to have the ability to change with the market very quickly. In our industry, for an independent store owner to survive, they will need to stay one step ahead of the competition and to forecast what happens in the digital market.
"Cellphones are getting better and may take over the camera market."
This year had been challenging, Mr Kemp said.
His son, Harrison, was one of two boys flung from the boot of a car when it was involved in a collision with another car in Richardson St, St Kilda, in January.
Harrison landed on the footpath, receiving serious leg, face and brain injuries.
His friend, Simon Charlton (11), was killed.
"2008 is a year we won't be remembering too fondly. I hope any memories of it get corrupted and lost," he said.
Mr Kemp said he was not sure what the future held for him.
Once the liquidation process was completed, he would reassess the situation.
In the meantime, he would continue to support Harrison, who had spent many weeks in hospital recovering.
He was now going to physiotherapy up to three times a week to learn how to walk correctly again.
"Hopefully, by summer 2009, he will be able to do the things he used to do, with a few restrictions. It's been a long and challenging year."
