Classic Cookware, currently based in Lower Street, is set to take over the coveted spot in the High Street later this month.
Manager Gill Sutton, who is retiring after 20 years as owner of the gift shop, said the decision to close was a difficult one.
"It took me a long while to decide because I absolutely love it here and it was a very hard giving up something I enjoy so much.
"The customers are all very sad as indeed I am. It has just been a fantastic experience meeting so many wonderful people and these are such a nice premises to work in."
Howard's sells a wide range of gifts including ornaments, suitcases, picture frames, toiletries and jewellery, the biggest sellers being the Portmeirion Pottery and the Dartington Crystal.
Since the closure was announced, customers have been snapping up goods in the closing-down sale.
Miss Sutton continued: "All the clothes have gone as have the Gardeur trousers and we have sold out of the Portmeirion.
"Fortunately Classic Cookware will be continuing 15 of our lines including the Portmeirion, so customers will still be able to get much of our popular ranges and Amity Ladies fashion in Grayshott will be stocking the Gardeur range."
Last year, the shop celebrated its 40th anniversary in the town. Miss Sutton is its fourth owner.
Previous owners were Mr Boxall, Major Causton and the shop's founder, Howard Waterman.
In Miss Sutton's time, the shop has undergone two extensions to diversify into ladies' fashion, a decision which proved popular with customers.
Of her current staff, some will also retire, while others will work for Classic Cookware.
Miss Sutton, who lives in Midhurst, said she plans to keep busy in retirement.
"I love walking and being in the country, so I want to do plenty of that. I'd also like to see more of the UK as I've spent a lot of time abroad in the past. I'm planning to drive around the coastline across Wales and Scotland.
"In September I will probably get a couple of dogs."
She is also keen to stress that the success of the shop is very much a team effort.
"I would like to thank all the ladies who work here for their support. They have been great company and fantastic to work with.
"I must thank all the customers, because you couldn't have a business without them.
"They have been extremely loyal and supportive."
Howard's will close on March 20 and Classic Cookware will open on March 25.