The shoe shop is just the latest in a string of business closures, which now has around 20 empty shopfronts waiting for new tenants in and around the main street.

Collins Booksellers owner Jenny Leggett said she had been watching with dismay as Baylis Street slowly empties of businesses, particularly the chain clothing stores that were being shut Australia-wide.

"Shops seem to come and go sometimes, and lately there's more going than coming sadly," Ms Leggett.

"I think some of them are closing down not necessarily because of what's happening here - it could be something happening company-wide that means they can't survive."

RB Sellars' Liz Cronin said she was deeply saddened to see her neighbours close down, saying that the "biggest shock" to her was seeing the iconic Milton's Gear shut after 45 years in business.

Over past few months Ms Cronin has seen several other nearby businesses go bust, including Riot Art, FSW, and Ishka.

"In this block alone there's a heap of shops that have closed down," Ms Cronin said. "It's very sad during this time and we really need people to just get out and buy local, walk down the street rather than go to the major destinations."

Ms Cronin has already noticed one new shop being opened across the road from her, giving her a "glimmer of hope" for the recovery ahead.

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Wagga Business Chamber president Rhyley Hunter said for the past few years there had been more vacant shopfronts and fewer prospective tenants on Baylis Street, a trend made even worse by the last few months of COVID.

Mr Hunter said something urgently needed to be done to fill in the vacant shopfront windows, such as temporary rent reductions, short term leases, and cutting fees and regulations for small business owners.

"We're working collaboratively with council to try and rectify some of these issues so it does become more of a vibrant city centre so we can attract new businesses to town and other people looking to open up on the main street," Mr Hunter said.

"I think over the next six to 12 months hopefully we will see a bit more of a resurgence in business and people looking to utilise those shops, be it for retail or office space."

Amanda Myers, who owns Satin Touch lingerie and Simp-lee Yoga, said both of her businesses were already showing signs of recovery after returning from lockdown.

She said her yoga studio was now "really, really busy" after having been shut for 12 weeks, and that her lingerie shop was currently seeing sales that were higher than last year.

"Here's what I think it is: we can't travel, we can't go overseas, we haven't been able to go to South Australia and Victoria, so people do have a bit of money and they're happy to spend it locally," Ms Myers said.

"People are supporting local people."