A VILLAGE will soon be facing the "dark day" when it loses its post office and shop after the business fell victim to the credit crunch.

Sub-postmistress Kathy Strong says she cannot continue to operate in Ide, near Exeter, after a slump in trade.

Mrs Strong, 53, said she was "desperately sad" to make the decision after 15 years of running it.

She said a changing demographics coupled with modern shopping habits and the credit crunch meant she had no choice but to give up.

"The shop takings have fallen so low that it just isn't viable any more," she said.

"It's the saddest thing I have ever done, but I'm going to have to close the post office and the shop."

Residents were first alerted to the situation at a public meeting in November. Many pledged to support the store, but business has not picked up enough.

"My takings took a real dive when the credit crunch hit, and by October I realised I couldn't carry on like that for much longer," said Mrs Strong.

She said Christmas week, normally a bumper sales time, was down £2,000 on last year, with a takings slump of about £500 for an ordinary week.

Mrs Strong said more couples had moved into the village, with many working during the day. "Sometimes, it's like a ghost town around here," she said.

A Post Office spokesman confirmed the business would close on March 31. She said the organisation was committed to continuing a service in Ide.

Last year, nearly 100 post offices across Devon and Cornwall were closed, and almost 50 more were replaced by outreach services, after the Government ruled cuts had to be made.

In Ide, residents have voiced concerns over how the closure will affect vulnerable members of the community, who may now have to take one of the few buses to Exeter to find a post office.

Peggy Houghton, 80, uses the post office to collect her pension. She said: "It's terrible that it's closing. A lot of people are devastated. Exeter's difficult to get to – we're all very sad."

Michael Easterbrook, who runs Drakes Farm bed and breakfast, said: "When I was a child, Ide had seven shops, and now they've all gone."

Teignbridge district councillor Howard Milton, whose ward includes Ide, has been involved in informing residents. Coun Milton's wife Sandra runs the post office at Kennford and he runs the attached shop.

"The closure of Ide shop and post office will be absolutely horrendous for the parish," he said. "There may be the possibility to look at a community run store over the coming months, but at the moment, it's certainly a dark day for Ide."