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There's optimism the closure of one of Hamilton's oldest and most iconic stores won't be the demise of the suburb Frankton.

Forlongs, which employs over 100 people, is considering shutting up shop for good.

It occupies a huge amount of space in Frankton, and is on both sides of the main street.

Councillor Angela O'Leary said Frankton is an area with a huge amount of history and new development, and it's not just about the shops.

"I wouldn't want anyone to say that would be the nail in the coffin for Frankton because I don't believe personally that it would be."

O'Leary is currently leading a development plan for the area and said she'd like to see it stay.

"I really feel for the staff that are there now and I know that the local businesses that've been in and round Forlongs for such a long time will have some concern."

But there's reassurance for the current staff.

Waikato Chamber of Commerce CEO William Durning said there is demand for workers across the Waikato at the moment.

"I am confident that there will be roles if this indeed does take place - for people who are currently employed by Forlongs in other areas."

Durning says it could be good news for new developments in the area as such a big space in a prime location so close to the city is "really desirable."

"I would say that businesses - not just within the region - but even throughout NZ, will be saying 'there's an opportunity that we should be seriously considering.'"