Several Dunedin businesses are shutting up shop, despite a healthy retail market.

A hotel in George Street is closing at the start of July, leaving its 40 staff without jobs.

The hotel's been bought by a local property developer who plans to replace it with a high-end motel.

A nursery business in St Clair is also closing down.

And the owners of a clothing shop in St Andrew Street are getting rid of all remaining stock before shutting for good.

The latest retail statistics show it's been a good start to the year for most businesses, with spending up across the country.