David Jones's receivers are set to close 19 of its 38 stores.
Suppliers say they are sad but supportive of the decision.
The affected stores are expected to continue trading through the peak seasonal period.
While news of David Jones's plans to close half of its stores may sadden some customers, some suppliers say a streamlined operation could boost sales by encouraging more shoppers into fewer, higher-performing stores.
The 188-year-old department store went into administration last week.
On Wednesday, its receivers announced plans to close 19 of its 38 stores.
Owner of Spice brand Lord and Lion, Eresha De Zoysa, which has been stocked in the entire David Jones network for five years, said she was concerned the closures would wipe a significant amount of her business.
"The way that we were able to access people in communities that we ordinarily would not be able to access was by David Jones," she said.
"So even though, on the whole, those stores may not make commercial sense for Anchorage to keep or David Jones to keep … our brand did really well, and we were successful in those stores.
"It's a sad day, but I think we just have to be a bit more clever in how we're going to access [those customers]."
