MACKAY Jewellers in Ararat will close its doors at the end of the month.
The business is one of several to announce its closure in recent months, with Dimmeys Ararat and Nguyen's Chinese both closing down and Toyz On Barkly closed until further notice.
Ararat council's chief executive Tim Harrison described retail currently in Ararat as "a lot of churn".
"It's sad to see a long-established business close," he said. "But there are new businesses interested in opening."
He said the council was working with business owners.
"We've had some conversations about how council can support the business community," he said.
At Mackay Jewellers, owner Fiona Mackay said it had become unsustainable to continue running the store after 11 years in Ararat.
"In the last two or three years, retail has becoming very challenging," she said.
"I think it's the low economic confidence, and the other thing is definitely online shopping. (Money is) being spent at night, on weekends and public holidays, and that's what's affecting the local retail communities."
First National Ararat director Phil Clark said online shopping was impacting the nature of shopping centres, but it was not a tale of doom and gloom.
"Retailers are not there like they used to be, but home-based businesses are growing and getting the confidence to go and open up their own shops," he said.
A recent example of this is We're Knot Crazy - a pop-up shop open just four weeks on Barkly Street.
Owner Liesa Iezekil opened the store after building her brand online, and said without the low overheads provided by online shopping, she would not have been able to move to a physical store.
"I did it from my dining room at home, then we went to the shed because we expanded," she said.
Mr Clark said alongside smaller home-based businesses, the service industry was growing and starting to fill former retail spaces.
"We're not leasing as much to those retailers - we're leasing to those other new industries whether it be a service provider, a food operator or allied health," he said.
One retailer who does feel supported is Eclectic Lifestyle owner Wendy Lynne.
"I find the local people are very supportive and you do get visitors as well," she said.
- Ararat Advertiser