While the growing threat of online retail is often referred to as the primary cause of concerns, it actually only accounts for approximately nine per cent of all sales, according to NSW Business Chamber regional manager Joe Townsend.

On a global scale Australia remains at the forefront of bricks and mortar retail, only accounting for 0.01 per cent of all online sales worldwide.

"The retail industry is undergoing significant structural change, which is occurring everywhere, not only in regional NSW," Mr Townsend said.

"Any closures would certainly leave a negative impact on employment, however they would also open up opportunities for other businesses, and auxiliary industries like deliveries and transport to fill those gaps."

Mr Townsend said that drought is far and away having the biggest impact on local economies, although believes that Tamworth has the economic strength, and people power, to see it through.

"Drought is having a huge impact on disposable incomes, and unfortunately those large retailers have a huge footprint with massive overheads," he said.

"I believe the Tamworth stores are unlikely to close being a larger regional centre, although there can be a silver lining to closures like this.

"Those large spaces can be split into smaller retail spaces that can fill the gap in the market, while we might also see see employment gains in other industries like warehousing, information technology, transport and logistics."

The Chamber is urging businesses to embrace the online market, rather than fear it.

"Bricks and mortar won't disappear because the confidence in online retail isn't there yet - but don't look at online as a negative," Mr Townsend said.

"Many Australian businesses are taking advantage of the opportunity to compete outside of their traditional geography, and even access overseas markets.

"With every negative comes an opportunity. It's important our local stores continue to transition and utilise technology to shore up their businesses"