Small businesses in Hobart are closing down their shopfronts and moving online in growing numbers.

One women's fashion business in the CBD is closing its shopfront in November so it can run entirely online.

Manager Amy Deeley says it is not because business is bad.

"We could keep the shop open but I think sometimes you just want to focus on that one thing," she said.

The move online does not necessarily mean cutting staff.

"Rather than losing jobs I think we're probably adding jobs, as it expands we're going to need more and more people."

While some retailers are making the move online voluntarily, others say they are being forced out of shopfronts.

Robert Mallett from Tasmania's Small Business Council say many retailers are moving online because of rising overheads.

"A whole range of costs are increasing all the time for the small business sector and it's just becoming more untenable."

He says the big chain stores are frequently taking over shops vacated by small retailers.

"They're being snapped up by bigger businesses, that's the Country Roads for example," he said.

"They've got huge infrastructure that can support their buying, their wages, their cost centres, their expenses and what they can manage to do is to have staff on the floor who are able to sell.

"Small business people have to do all of that in their own small business, they don't have those resources."