Armidale's Big W store and Narrabri's Target Country are set to be axed, and with the Mosaic Brands announcement that up to 500 stores could close, several Tamworth retail shops could be on the chopping block too.

Business NSW regional manager Joe Townsend said if local franchises fold, it would "hit home" in the region.

Mr Townsend said supporting local business - big or small - was more important than ever.

"As you look around the region, the majority of our retailers are associated with large national franchises these days so they're really important, they're the lifeblood of our CBDs," he told the Leader.

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"People need to continue to support local and whilst they're a little bit uncertain of the current conditions ... it's really important to support our local shops."

Mr Townsend said he was personally shocked to hear the news this week that Mosaic Brands would be closing up to 500 stores across the nation within the next two years.

"You do expect these bigger brands to have more robustness around them," he said. "I think from their perspective, they're just making a commercial decision that they might have to cut off the hand to keep the rest of the body."

The company has not yet announced which of its almost 1400 stores would close.

There are seven Mosaic Brands labels in Tamworth, three in Armidale, two in Narrabri and one each in Gunnedah and Inverell.

Mr Townsend speculated one possibility could be to spread stores around the region.

"[Mosaic] could selectively pick one brand to be in Tamworth and another to be in Armidale, so there might be a reduction in that sense, but ultimately that's Mosaic's commercial decision," he said.

Mr Townsend said if retail giants were to close in the city, it could make Tamworth less attractive to people who day trip here for shopping.

The exact number of people who work for Mosaic Brands in Tamworth is unknown, but the closure of Big W in Armidale puts 46 workers in limbo.

It also means the spaces occupied by these stores could be left vacant.

But, Mr Townsend said the upside of any conglomerate closing is that it gives locally-owned "boutiques" the chance to move in, or creates more office space, or could give thriving businesses the chance to expand.

"Now that we're starting to see some form of normality in regards to the restrictions enforced locally ... we'll actually see some brave entrepreneurs step up to fill those gaps," he said.

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