Flora Fauna, described as a "nature gallery" by owner Meredith Parkin, is closing at the end of the year after operating in Church St for the past five years.
It comes after news of the impending closure of another boutique, Decode, around the corner, and the Ivan Clarke Gallery in a few months’ time.
Ms Parkin said the problem was the cost of rent.
"To be honest, my landlord’s been quite reasonable, but it just doesn’t weigh up — small boutique stores just can’t foot the bill, unfortunately.
"My business is quite niche, I suggest, so it just can’t generate that sort of rent.
"It’s the rent and the operating expenses that go along with that. It’s just out of kilter to what you can get by way of return."
Ms Parkin said the resort town’s central business district was becoming saturated with chain stores of the type visitors were used to in their own countries.
"I guess [the chain stores] have the money to sink into these huge rents, and they have big sales too.
"So many people have come in and said, ‘You know, where are some other cool places in Queenstown?’
"They do find it’s sad that it’s just chain stores."
Ms Parkin, whose lease runs out on January 1, said there was a chance she might relocate to Frankton.
