But, with ongoing postal delays and a looming Australia Post Christmas parcel deadline, Fairy Meadow shop owner Michaela Lamond is hoping the convenience of an old-fashioned shopfront will give her new store a much-needed boost after a tough year.

Ms Lamond was due to open the doors of her boutique Oli and Jac in July, right at the start of NSW's four-month lockdown.

Stocking popular homewares and lifestyle brands like Sage and Clare, Mr Consistent and Celia Loves, as well as Illawarra brands including The Mouse and Me, Banabae and Wean Meister, the businesswoman and mum to 18-month-old Olive spent her maternity leave building the shop of her dreams.

"I had planned to have a grand opening with cocktail samples, music and giveaways to launch the store with a bang," she said.

"However, [as I was opening], there were more and more COVID-19 cases and it was announced that the initial two-week lockdown at the end of June had been extended.

"My rent-free period to complete the shop fit-out finished right as lockdown started, and I knew that I could operate online to get me by.

"But being a new business, I didn't have the exposure a shopfront would bring and knew that I would struggle to cover the cost of rent."

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Her landlord agreed to extend her rent-free period, which helped, but as she had just opened and couldn't prove a decline in business, Ms Lamond wasn't eligible to receive government assistance.

"I was terrified. I had just invested a large chunk of my family's savings into a shop fit-out and stock. For the weeks following, I used my personal funds and a small number of online sales to float the business."

When customers were finally able to come into her Princes Highway store, Ms Lamond said she experienced a "dramatic increase" in sales. However, just over a month later she had to deal with "cyber week".

"I was seeing big businesses offering out-of-this-world deals that I honestly could not even attempt to compete with," she said.

"In addition, brands I stock were offering amazing deals and trade definitely decreased. It was so humbling when customers came into the store and noted that they preferred to 'shop small' to avoid the crowds (especially with COVID still present) and also to avoid shipping costs."

With Christmas fewer than 10 days away, Australia Post has advised that any parcels sent by regular delivery may not make it on time for the big day. The express deadline is December 20.

Ms Lamond is encouraging people to consider "buying local" in the lead up to Christmas.

"I would just say visit your local stores and discover some truly unique products and outstanding customer service while helping to build a strong and successful community around you."

"I can wholeheartedly say I care about, and I'm invested in the wellbeing of my customers, my community and its future because it's my wellbeing, community and future too."

Wollongong City Council says small businesses have taken a "worrying" hit during the 2021 lockdown, and is encouraging residents to shift their buying habits in the lead up to Christmas.

According to General Manager Greg Doyle, the total local spend in the Wollongong Local Government Area fell by over 30 per cent in the July to September period compared to the same period in the previous year.

In the same time, online spending boomed.

"What we know is that over the past 12 months, online spending and spending outside of the region by Wollongong residents, totalled $2.5 billion," Mr Doyle said.

"If we could change Wollongong residents spending habits by just 10 per cent - by shifting just 10 per cent of what we spend elsewhere and online by buying - we would see an extra $250 million enter our local economy.

"This in turn would support 3200 new local jobs."

"Now that lockdown has ended and small businesses are open, we're encouraging our community to think about their own shopping habits and consider how they can support their local small businesses."

Over the coming weeks, the council will begin to roll-out different initiatives to support local businesses and encourage residents to "Shop the Gong".

In the mean time, it is encouraging people to head to their nearest main street before leaving the area to shop, and asking people to leave online reviews to share the news about good local businesses.

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