Another shop is moving out of Old Town, despite scores of new flats, which it was hoped would boost trade in the area.

One World furniture store in Victoria Road will relocate once it has cleared its stock after more than five years of being in business.

Andrew Harding, 52, runs the business which specialises in Mexican pine, ethnic crafts and paintings with his Thai wife, Pranom, 47.

He said: "Trade has dropped by about 30 per cent this year. It's very hard to make a living in the retail business these days. No one comes to shop in Old Town."

Last year New World was busier than ever before. And Mr Harding puts the sudden slump down to the closure of the Princess Margaret Hospital. He claims parking is another problem.

Mr Harding said: "Since the hospital moved, passing trade has fallen significantly. When they changed the car park entrance in Devizes Road that created confusion and pushed customers out."

Several other shops have already closed in Old Town this year, including Spillers furniture store, Panache caf and Tinkerbells.

The redevlopment of the Old Town core area a former car park bounded by Devizes Road and Newport Street has created 58 flats and maisonettes. It is hoped new residents will start to shop in the area.

But Mr Harding, who also manages a care home in Bath Road, thinks this is unlikely. He said: "Small businesses are a dying trade. My mother and grandmother both ran general stores. But these days, shopping habits have changed. People go to shopping centres where the big names are."

Alternative premises for New World have yet to be arranged.

As for the future of Old Town, Mr Harding believes cafs hold the key to its revival.

He said: "Old Town may not be the perfect retail environment but it's ideal for caf culture. It is an affluent area with low crime and makes a great place to have a coffee or meal out."

By contrast, Richard Deacon, chairman of the Old Town Business and Professional Association, remains upbeat about retail prospects.

He said: "This year business has not been so brisk for shops all over the country. Yet there are signs of things picking up and the redevelopment of Old Town can only be good news for shop keepers in the area."

Comings & goings in Old Town

Wear It Well dress agency, in North Street, will shut next Friday 11 years after it first opened in Old Town.

In July Spillers family-owned carpet and furniture store, in Victoria Road, closed after 160 years of being in business.

Thriving caf Panache, in Wood Street, closed in the same month 18 months after it opened to sell home-baked bread, pastries and meals.

In March Tinkerbells fairy shop and children's party service shut, partly due to parking shortages in the area.

Small, independent stores have been disappearing from Old Town for years. Gone are grocers Worknabs and bakers Dunningham's. Old Town Butchers in Devizes Road closed around four years ago and greengrocer Ken's in Wood Street stopped trading seven years ago.

But traditional businesses like the butcher and baker could return to the area because nine new shops have been built as part of a multi-million pound project to transform the core area of Old Town.

The shops are located behind Wood Street, the Co-op and Mission nightclub. One of them is Done Bookmakers, which opened last month.