To those of you who thought Facebook’s Gift Shop was a credible place to shop for presents (*cough* – cheapskates), it seems the time has come to make a trip to the $2 shop instead, following the announcement that the social-networking giant will be closing its Gift Shop as of August 1st.

According to Jared Morgenstern of The Facebook Blog, the decision to close the Gift Shop, launched in 2007, was due to the “need to focus our product development efforts” on other Facebook features and products like Photos, News Feeds and games.

This news comes after less than a year of Facebook announcing a move towards redesigning and enhancing the Gift Shop catalogue, which saw a new range of products including gifts for charity, music and sports.

The birth of the Gift Shop had a significant impact on the site, as users were required to purchase gifts through “gift credits”, creating a virtual currency that is now used to buy a myriad of games and applications available on Facebook.

However, Morgenstern promises that, “gifts you’ve already received on your Wall will remain visible, and you still will be able to view your sent and received gifts on your gifts page.”

This may mean that third-party Facebook applications like Birthday Cards and Pieces of Flair might experience a growth in popularity, since users will still be able to send gifts to friends through these sites.