The book and record store which Pulp frontman Jarvis Cocker once said it would be a crime to destroy, will make way for new development on Devonshire Street.
The business has been an institution for almost - a treasure trove of books and records in a former betting office in Sheffield's Devonshire Quarter.
It was set up by owner Allen Capes' brother, John, who left the business 19 years ago to establish an online firm.
Customers took to social media to express their disappointment at the shop, which opened in 1969 - the same year as the iconic Woodstock Festival - closing down.
Fee Hutch said she wouldn't walk down that stretch of Division Street anymore, while Jo Gavins said lunch hour wouldn't be the same without a shop visit.
Charlie Beety said he was 'totally gutted' his favourite store was closing down.
A tweet from Ruthlouise said: RIP Rare & Racy, sad that this iconic and independent Sheffield record and art shop has to go'.
Other tweeters urged Sheffield to value its independent retailers.
Mr Capes did not want to comment on the shop's closure yesterday when approached by The Star.