The store's future was in jeopardy late last year when Harris Scarfe went into receivership. Twenty-one stores were closed nation wide, however none of Tasmania's stores were among them.

Mr Grose said the news augers well for the long-term outlook of the "important" retail business.

"Given the rigorous assessment that all businesses in the Harris Scarfe chain underwent, it can be taken as a very positive sign of the long-term health of the Launceston store. If it were otherwise then it surely would have been closed," he said.

Mr Grose said while there is much more that can be done to ensure Launceston's retail sector can fulfil its potential, Harris Scarfe remaining is a good sign.

"To help the future of all business in Launceston, we need to embrace a future where the city is a desirable place to be, to spend money and to look forward to visiting," he said.