The Lion & Unicorn Bookshop in Richmond, London, is to close after 36 years.
Owner Jenny Morris said she had made the decision to terminate the current lease from August as a result of "unsustainable" rent increases over recent years, with a further rent review pending.
"I am stepping down after 36 years of following my passion for children's literature and . . . inspiring a lifelong love of books in the three generations of children who have become our regular customers over many happy years of bookselling," she said.
"I would like to thank all those who have supported us since 1977 (when Roald Dahl was our very first, honoured guest author) including the publishers we have always worked with closely over the years and all the wonderful children's authors and illustrators who have given their time so generously at our many bookshop events and inspired us all."
Morris said she suggested "a safe pair of hands for the continuation of our essential schools' services" with Isla Dawes and her staff at the neighbouring Kew Bookshop.