A piece of Australian retail history has gone up in flames in north-west Tasmania after fire destroyed one of the first Coles family stores.

Authorities are investigating the fire at Wilmot, near Devonport, which started just before 5am (AEDT).

Seven crews battled the blaze but were unable to save the store.

The owners were asleep inside when the fire started and escaped without injury.

Paul Hill from the Tasmania Fire Service says there was little crews could do.

"Unfortunately because of the age of the building and how dry the timber was, and the construction type, there was very little our volunteers crews could do," he said.

The store was operated by the Coles family from 1910-1921 and has longed been touted as the first permanent Coles retail store.

It was opened by George Coles whose son went on to establish the supermarket chain after opening stores in Melbourne.

Coles spokesman Jon Church says the company is shocked by the news.

The store was started by GJ Coles whose son went on the establish the supermarket chain. ( Simon King )

Wilmot resident Simon King says he was woken by the blaze which he says took hold quickly.

He says it was lucky nearby gas bottles and petrol pumps were unaffected by the fire.

"It was very intense and very quick," he said.

It has been a meeting point for the community and Mr King says locals gathered outside and watched in disbelief.

The store now trades as the Wilmot Country Store and includes a post office, newsagent and bottleshop.

It has recently been sold and the new owners were due to take over next week.