Booksellers remain confident in the industry despite the closure of Whitcoulls' flagship Queen Street store.

The well-known book retailer is set to close the doors on its central city premises next month.

The owner of Auckland's Unity Books Jo McColl says despite the closure, book sales are better than ever.

"We've never been busier, and our Wellington store is the same. They're both flat out, doing more than they've ever done. So I don't think people are going of to the internet, and I don't think people are reading Kindles."

McColl is unsurprised at the announcement, considering the high cost of Auckland rent.

Urban planners, however, are hopeful Farmers' new store will make Auckland an internationally competitive city.

General Manager of Auckland Council's urban design office Ludo Campbell-Reid says the new department store will attract International businesses and tourists.

"There's a great big dramatic change in the landscape of the city and most people think 'well, let's go off to Melbourne and Sydney to go shopping'. Well, it would be nice if people from Melbourne and Sydney would come to Auckland to go shopping."

Campbell-Reid expects the new store to bring much needed foot traffic to Queen Street.

"It's an attractor for businesses, but it's an attractor for pedestrians and for tourists."