Victoria's pandemic declaration has been extended for another three months, as the state surpasses 4000 deaths as a result of COVID-19.
The declaration, due to expire before midnight on July 12, has been extended until at least October 12.
The National Retailers Association CEO Dominique Lamb said businesses understood the state's attempt to curb the pandemic.
"However, we call on the state to ensure that the extension of these restrictions do not negatively impact the operation of businesses as we would not like to see anymore forced closures," she said.
"We know small businesses are resilient, but after multiple setbacks this year any further restrictions would only cripple the retail sector and hurt the Victorian economy."
Lamb said retailers have welcomed Victoria's measures to keep employees CovidSafe, however.
"The NRA welcomes the changes made under the Occupational Health and Safety Amendment Regulations 2022, which will allow employers to collect the vaccination information of workers if they choose to have vaccination requirements to keep their workplaces CovidSafe.
"Business owners should be empowered to make the decisions regarding the recent extension of COVID restrictions in Victoria. This would allow business operations to continue on smoothly and confidently without negative disruption.
"The NRA believes that the removal of some of the vaccination requirements under Pandemic Orders, gives employers and employees agency with implementing CovidSafe policies tailored specifically to their business processes. This is a signal of reassurance from the government to small business owners in Victoria during this difficult time."