Congestion slump hits shops

Shops inside the congestion charging zone have lost up to half their daily takings since the scheme began.

Both designer boutiques and established high street retailers have suffered a slump in trade as some customers have avoided driving into the zone.

New figures reveal that sales in some outlets fell by as much as 50 per cent compared with last year. The findings raise concerns about the longterm impact of the charge on London's economy.

Colin Stanbridge, chief executive of the London Chamber of Commerce, said: "The worry is that retail businesses in the heart of the capital will lose out to shopping centres on the fringes of London. We would be disappointed if congestion charging hastened this process. It is not just the shops themselves that would suffer - London as a whole would be harmed as they give the city a buzz and a vibrancy that makes it so attractive to visitors, especially from overseas."

The new figures emerged the day after retail monitoring company FootFall reported that the number of shoppers in the congestion charging zone fell by an average of 12.4 per cent on Monday.

The statistics are based on detailed camera images which allow analysts to work out exactly how many customers entered certain high street chain stores in the zone. A total of 13 household names were surveyed, including Marks & Spencer, Boots and fashion retailers Morgan.

Today, other stores reported similar falls in sales compared to 17 February last year, which also fell during the half-term break.

Stores on Marylebone High Street - which forms part of the boundary road of the zone - are a representative mix of individual shops and chain stores.

Those reporting a drop-off in takings were the Conran shop (down 10 per cent), Japanese furniture boutique Yo No Bi (down by 50 per cent), florists Earthworks (down 10 per cent), New Cavendish Jewellers (down 50 per cent), Howdle furnishings (down 50 per cent), and Alexandrow Jewellers (down an estimated 20 per cent). Designer cookery shop Divertimenti also reported a fall in customer numbers.

Retailers in the area described trading on the first day of congestion charging as "disastrous".

Navin Shah, owner of New Cavendish Jewellers, said: "It was absolutely terrible, and it is not showing much sign of getting better. We are right on the zone and people are just not coming in."

Divertimenti owner Michael Schneideman said: "The customer count in Divertimenti on Monday was noticeably lower and this was particularly obvious in the cafe area of the store. Customers are seriously inhibited by the congestion charge."

Julie Hipkiss, who owns furniture shop Yo No Bi, said takings fell by 50 per cent compared to the same halfterm Monday last year.

Miss Hipkiss, 40, said: "I have really loved it here since I opened the shop and business has been good. But Monday was awful. There were hardly any customers.

"I had one lady in who said she had parked her car just outside the zone, and was walking, but wouldn't walk any further. That's proof that people are losing business because of the charges.

"My worry is that many of the customers who come here just won't come in any more. Congestion charging wasn't on the agenda when we opened in April 2001. It's difficult to tell how things will work out in the long run."

Elsewhere, restaurants in the congestion charging zone were also heavily affected - despite the fact that the half-term break often attracts extra trade.

Business at Indian restaurant Yatra in Mayfair was down 33 per cent compared to last year, while takings at Just St James, which offers modern British cuisine, fell by 17 per cent.