Iconic Australian retailer Dimmeys is closing its stores after 166 years of trading.

The company released the news in a Facebook post on Tuesday, which has since attracted more than 2000 comments from mostly shocked and disappointed customers.

Dimmeys has announced it is closing after 166 years Credit:Justin McManus

Dimmeys, which specialises in discount and "no frills" merchandise, has 31 stores across Australia listed on its website, more than half of them in Victoria.

Many are located in regional towns. It's website also boasts about recently opened stores in Sunshine and Rosebud and its plans for further expansion.