The Tasmanian Fire Service confirmed crews from Burnie, Devonport and Somerset were attending the scene after reports of smoke coming out of the Kmart store.

"On arrival crews reported a strong smell and smoke haze throughout the Kmart complex," the TFS said.

All staff and customers were evacuated from the complex just before midday, with people in the Kmart evacuated first.

Centre employees were directed to the grassy corner outside the Anglican Church, where they are currently waiting for an update.

Staff at the centre said they noticed the smell of the smoke just before they were evacuated, particularly in the corridors.

The cause of the smoke is still being investigated.

Tasmania Police have restricted traffic flow around the plaza as the incident continues.

This includes restricted traffic on Alexander Street between Wilmot and Cattley Street and also on Mount Street between Wilmot and Cattley street.

"Traffic is still flowing on Wilmot Street and Cattley Street," police said.

"Motorists should avoid the area until further notice."

MORE TO COME.