The retail industry is Australia's largest private employer, providing work for 1.2 million people.
The downfall of some of the sector's biggest brands may put thousands of jobs at risk.
Administrator Cor Cordis is looking over the books of Herringbone and Rhodes and Beckett to see if the businesses can be salvaged, amid rising costs and mounting debt.
Last week Marcs and David Lawrence entered administration.
Russell Zimmerman, the Executive Director of the Australian Retailers Association, says there are three key issues.
"Retailers are paying very high penalty rates on a Sunday, they are unsustainable, they are paying them on public holidays, after 6pm at night time so those penalty rates are totally unsustainable in the industry and they need to be changed. In the second place, retail rents are running approximately 5 per cent year on year that is also unsustainable, particularly when some areas of retail are not doing those great numbers last but not least, the Low Value Threshold most definitely is something that needs to be fixed by this government to ensure that we can get onto a level playing field."
The Low Value Threshold means goods imported into Australia with a customs value that does not exceed $1,000 are not subject to GST.
Earlier this week, the Bureau of Statistics said retail sales fell by 0.1 of a per cent in December - but is 3 per cent stronger year-on-year.
Russell Zimmerman says consumer are spending, but they're spending selectively.
"If you take particular items, like fashion and fast food, they are sitting well above those figures. Fashion is sitting at about 8 per cent year-on-year up, and fast food sitting at about 9.5 per cent."
But he adds they're competiting against new international entrants and online retailers.
"I think that there are some retailers in trouble and we don't hear about the smaller guys that go, yes there are some diffculties out there but in the main, I think retail is going along reasonably well."
Some retailers are performing better than others.
Premier Investments, which owns brands like Portmans, Just Jeans and Smiggle, said it expects to post record first-half sales.
Russel Zimmerman says overseas expansion plans help.
"They have got their rents in the right places, they know what they can maximum pay, and they are prepared to walk, many good retailers are prepared to walk from a site, when it gets too expensive so I think that's the first thing, I think they've got their wages under control last but not least, I think it's a very important point, people like Premier Investments are looking overseas, they are starting to expand themselves and that gives them good growth."
CommSec Chief Economist Craig James says there is also a trend of consumers demanding more for less.
"What we're seeing in terms of lower end retailers and manufacturers is that they've lifted quality but they haven't lifted price at the same time and consumers certainly like that."
Mr James says on the jobs front, potential jobs losses may be offset elsewhere.
"We did have data earlier this week saying job advertisements had posted one of its biggest gains in a couple of months, up in the order of 4 per cent, so the outlook for the jobs market still remains quite favourable."
The next official unemployment report is due to be released next week.
