The council approved the addition of three more warehouse-style retail buildings behind Bunnings on Thursday, ranging from 1880 to 2700-square-metres of floor space, although the identity of the businesses was yet to be released.

In addition to investigations into traffic impact and flood risk, councillors also raised issues regarding the future of the CBD as more shoppers seek out the convenience of big box retailers.

Councillor Hugh McKenzie said it was a sign of the times and the council had no power, as a planning authority, to prevent these developments from occurring even if it choose to do so.

"That doesn't mean that the CBD is redundant, it just needs to find another purpose," he said.

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"Yes, it has had an impact on the CBD. Arguably, it's just the way that people change their shopping.

"We could say 'no' to big box development. Would that stop people from buying things? Probably not, they'd probably buy them in a different way. It might actually impact on the fabric of Launceston by not having that additional opportunity for us to seek out and do things that we can do in other cities around the country."

Councillor Alan Harris agreed that the nature of retail had changed considerably since the time when most CBD shops were family-owned local businesses.

"The CBD is changing, the days of going into Charlie Begent's store in Charles Street ... is well and truly gone," he said. "Yes, those days of how people bought things have changed, but the CBD must now pivot and become a more people-friendly place."

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In late 2019, the council approved a $4 million expansion of Launceston's Kmart complex on Racecourse Crescent with 11 new tenancies to be created.

CBD retailer Robin Smith, who owns Coffee Republic, said the Kmart development would have more impact on the CBD than the Invermay expansion.

"I don't think Launceston's CBD was affected by any other single development more than that on Racecourse Crescent," he said.

"That can take whole stores from the city."

The council held a pop-up consultation session in Brisbane Street Mall on Saturday to gauge feedback on a proposal to reconfigure several CBD streets.

Stage 2 of the City Heart project involves making Paterson Street two-way with single lanes between Charles and St John streets where a bus interchange would be added on the old Birchall's car park, subject to a deal being reached to purchase the land.

Paterson Street would remain one-way from St John to George streets, but a lane would be removed.

A "multi-use space" for pedestrian-only events and festivals is also proposed for St John Street from Brisbane Street to where it intersects with the Quadrant Mall entrance.

Mayor Albert van Zetten said the focus would be on making those streets "more people-focused" and "more modern and vibrant".

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The next consultation session will be in Civic Square from 10am to 1pm on Wednesday, Quadrant Mall from 1pm to 4pm Friday, and then further sessions the week after.

Consultation closes on September 10.