Three-quarters of central London retailers have suffered a fall in turnover in recent months and most believe the congestion charge is to blame.
Following the introduction of the charge in mid-February, 73 per cent experienced a takings decline compared to last year. According to the London Chamber of Commerce and Industry, more than 80 per cent reported customer numbers down year on year.
The organisation surveyed central London retailers during the first two months of the charge's operation and is keen to assess any further impact on business.
'This is a worrying decline,' said London Chamber of Commerce campaigns executive Emma Winsor-Cundell. 'The retail sector can ill afford to take another hit.'
Although London had to cope earlier this year with terrorism threats, the Central Line closure and a weak economy, half of those surveyed said the congestion charge was at the root of the declining fortunes of central London retailing.
Harvey Nichols chief executive Joseph Wan said: 'I do believe the congestion charge has had a negative impact on retailing in London. It is causing unnecessary irritation for customers and that is not good at all. Trading has not been easy in London.'
Consumers are being deterred by the complexities of paying the charge, not its cost, said Wan.
Opposition to the charge is greatest among food retailers and lowest among luxury goods retailers. Larger stores are more likely to support the charge than smaller operators, the survey found.
The London Chamber of Commerce and Industry is launching a retail forum to represent and campaign on behalf of retailing in London.
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