Sadly today, the Victoria Parade strip resembles a ghost town.

Of the seven shopfronts between Stockton Street and the Nelson Tower bridge, six are vacant while the seventh - a resort store - is open just one day a week.

Rory Milne, a Nelson Bay and District Business Association committee member, said the closures were a blight on the business district.

"It is a concern but I firmly believe that once the new supermarket [Woolworths development] opens customer traffic will increase," Mr Milne said.

"The supermarket can't come quick enough. Leasing rates can be a problem but my understanding is that landlords are being more understanding with their tenants.

"Car parking can also be a problem but having the two free car parking stations has been a bonus."

Mr Milne said the current business environment was difficult, particularly for weekend and tourism-based enterprises.

"Some of us are being forced to work 80 hours a week to remain viable."

Port Stephens mayor Bruce MacKenzie said he sympathised with Nelson Bay CBD retailers.

"The only way to revitalise the business district is to encourage more permanent residents," Cr MacKenzie said.

"Coincidentally, the council has just put out an expression of interest for residential development of the [former] Donald Street car park and the car park adjacent to Rivers.

"I believe a few hundred extra people living in town will support local businesses all year round and help revitalise the town."