While Sturt Mall owner, Dexus Property Group, stated the tenant of four years was in breach of the lease, Sturt Mall Newsagency owner Neville Harding pointed to other reasons behind the decision.

"It was a culmination of factors, I guess," Mr Harvey told The Daily Advertiser.

"Rent, competition from supermarkets and competition of gambling products.

"It's another demise of small business, really.

"Eventually, our politicians will wake up and realise small businesses need more support, less red tape and larger protection."

Mr Harvey said he had worked in newsagencies since 1980 and gradually watched their demise with supermarkets retailing magazines, books and newspapers.

He expressed concerns last week that a five-year ban introduced by the Labor government to privatise the sale of NSW Lotteries in 2010, which will expire in April, could allow supermarkets to sell lottery products.

He explained while the matter would only make it more difficult for small businesses, the decision to close his business was more about financials.

"It's more of a matter of cash flow and you eventually come to a stage where you don't want to throw good money after bad," Mr Harvey said. "You eventually have to bite the bullet and realise newsagents are going to struggle."

Mr Harvey estimated his rent had increased between 3 and 5 per cent each year, but that number had peaked at 5 per cent per annum in August this year.

"Shopping malls are going to become supermarkets, fashion stores and food halls," he said.

"Your private businesses like butchers, bakeries, delis, hairdressers, newsagents and chemists could struggle."

"All existing leases have been recognised and we have secured the premises due to the tenant being in breach of this lease," a Dexus spokesman supplied.

They offered no comment on the detail of the breach or what would replace the business.

The Sturt Mall Newsagency sold on average 150 Advertisers each day and papers will still be available from Coles at the Sturt Mall.