Businesses operating on Mount Gambier's main street say increasing costs and changing consumer habits are hurting retail.
The city's chamber of commerce says large shop fronts are becoming increasingly unsustainable.
The city is planning upgrades to the street, and some small retailers are setting up shop.
Empty shops and "for lease" signs line Mount Gambier's main retail strip as high costs and online shopping drive customers away.
The city, in South Australia's South East, is home to about 30,000 people. It also serves as the commercial hub for the wider Limestone Coast region.
Mount Gambier's economic heart has always been based around Commercial Street, but that is rapidly changing.
A walk down the 1.2-kilometre retail strip between Wehl and Crouch streets reveals retailers are few and far between.
Country Attitude co-director Kathy Gandolfi, who has been in business on the main street for 22 years, said having fewer shops hurt everyone.
"It's good to have a vibrant main street," she said.
As high interest rates and inflation hurt consumers' pockets, increased overheads are putting added pressure on businesses.
Mount Gambier Chamber of Commerce chair Samuel Taylor said having a large shopfront on the main street was increasingly unviable.
He said bigger shops required more stock to display, but those items just racked up costs for the business every day they…
