The large Homebase store, near Barnfield Drive on the edge of Chichester, will close on November 6.
It will be replaced by a Bunnings Warehouse store, which will open later this year, the company confirmed.
Australian home improvement and garden store Bunnings bought Homebase for £340m in February 2016.
It is set to replace every Homebase across the UK and Ireland over the next three to five years in a £500m investment.
A spokesman said the new store will employ an additional 39 full and part-time staff members and ‘continues the momentum of establishing the Bunnings Warehouse format across the UK’.
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