Parts of Frederick, Filleul and London Sts were closed to vehicles in mid-January and are not due to reopen until April.
The closure is part of the Dunedin City Council’s George St upgrade.
The Photo Gallery owner Tim Green said the roadworks were making a bad situation worseas businesses struggled with the Red setting.
His Filleul St business had a turnover of about 70% less than usual.
The business survived through lockdowns when there was financial support available, he said.
Wakatipu High School has confirmed one student has tested positive for Covid, and it has two other probable cases, with 43 students and four teachers identified as close contacts so far.
However, the Red setting was more like a "voluntary lockdown", as businesses needed to be open but nobody wanted to come out and shop.
The roadworks were making the situation worse.
There was a lane open for people to come in and pick up goods, but no casual customers were stopping.
The city council was putting up some signage directing people to the stores, which would help a little, he said.
Council central city plan project director Dr Glen Hazelton said it acknowledged the upgrade would be disruptive, but said the project would deliver a much needed upgrade to the infrastructure in the area.
The council recently met businesses in the Filleul St area to discuss their ideas, which were still being worked through.
Some options, which may include tweaks to on-street parking and additional signage, would be prepared and presented to the businesses in due course, he said.
The council was also introducing a range of initiatives to support businesses through the construction period, as well as to tackle broader challenges facing the retail and business sector.
They included business mentoring and workshops to help upskill businesses in the digital area.
