A CITY centre shop opened amid high hopes by the National Railway Museum less than two years ago has hit the buffers.

The museum has blamed its decision to shut the store in St Helen's Square on the current "economic instability" of high street trading.

The shop opened in August 2003 in the former Terry's confectionery shop, which was the chocolate factory's retail arm from 1824 until 1981.

The new business sold a full range of railway and museum-related merchandise, from Mallard tea-pots to experimental steam tractor kits.

Characters dressed as Joseph Terry and railway king George Hudson opened the store, which was hailed by museum chiefs as an exciting and beneficial development for the city centre economy.

Janice Murray deputy head of the NRM, said that as a museum-based shop became increasingly successful, it had been decided that the time was right to extend the services offered to customers.

"The ideal location to expand the business is the city centre and No 3 St Helen's Square provides the perfect opportunity to do this," she said.

"We are hoping to raise people's awareness of the NRM through more presence within the city centre, and also to encourage more visitors."

She said the shop was expected to generate more income, that could then be reinvested in the development of the attraction itself.

Graham Stratfold, the NRM's head of visitor services, said then that York was famous for being at the hub of rail development and at the centre of the confectionery industry.

It was therefore very appropriate that the museum's first presence within the city centre was at the former Terry's shop.

He said today that the "regretful" decision to shut the shop was due to the "current economic instability of high street trading."

Mr Stratfold said: "All shop employees have been offered redeployment to suitable posts within the NRM."

He stressed customers would still be able to buy NRM merchandise by going along to the shop in the National Railway Museum which would remain open.

Updated: 10:38 Thursday, May 19, 2005