How do I let someone go that has done a lot for my store but feel her presence is becoming toxic?

I took on someone to help me with my clothing consignment store in February. I offered to barter giving her 20% off all her purchases, including $8/hr store credit which she wanted to use for her church.

When I agreed to have her work at my consignment shop I felt she was very capable, having retired from a hi-tech company and has owned and managed several other businesses including a high end department store. I never really expected much except that she hold down the fort while I took on some bookkeeping clients....about 8 hours per week. I appreciated everything she did as she enjoyed working with displays and dressing mannequins. Most days upon returning to the store she would bombard me with a long list of knit-picky problems. She always changed my mannequin displays, which bugged me, but I never said anything because she wasn't working for much and in general was very helpful. I would leave her a small list of things to do each day, but often she found more time to rearrange displays instead…again no big deal.

Recently I had to move the store. For a gift she offered to clear her store credit balance, which I felt was a huge generous gift! The following week she was removing some items from a box, and handed me the items saying she found them and what should she do with them. I told her I would really like it for her to keep the items in the box until I can figure out where I wanted them….she has an insatiable need to put things away and I tried to explain to her that I was visual and I needed things out so that I remember them. She seemed to be taken aback by this and we got into a discussion about her need to give me 110%. I explained that I did not feel it was right for me to expect 110% if I was not able to offer her much. She expressed that she needed to feel like she had responsibilities at the store and I agreed to fulfill her need. After our discussion she made a point of telling me that she was bugged that I changed all of her mannequin displays and always dressed them in black. This was defiantly an exaggeration and I was a bit angered at her pettiness, but did not let her know. Later that week someone commented that they observed her being dismissive and snooty to customers.

Yesterday she guessed a price on a necklace that had its tag removed…the necklace had been in the store as long as she had, so she should have been familiar with it. She ALWAYS calls me about pricing and I told her it was okay to estimate on items like jeans and sweaters. BUT yesterday she sold a $195 necklace for $7….and did not call me. This is the women that worked at a high end department store, can not identify a gold necklace? I am trying not to be angry, but I feel this is the last straw. I sense she snoops around and I catch her at small silly lies. She still has done a lot for me, but how to I let her go? What do I say?
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