The Capital's retailers reported their lowest-ever annual rate of sales decline in July following the terrorist attacks on the transport network, new figures reveal.
Data from the London Retail Consortium (LRC) shows like-for-like sales fell 8.9% last month compared to a year ago, the worst decrease since the survey began in October 2002.
Experts suggest the sharp drop means consumers are wary of further terror bombings after the 7 and 21 July attacks and unwilling to face the hassles of disrupted train services and security alerts.
West End businesses and tourist areas suffered most, particularly department stores and restaurants, as overseas visitors stayed away.
"The question now, is whether some consumers will continue to stay away from central London and whether tourists will be deterred by the threat of future disruption," said Kevin Hawkins, director of the LRC.
The shock comes after a spell of difficult months for retailers this year. Sales rebounded in June, increasing 3.6%, and recovered slightly after the first bomb attack.
Hawkins urged caution to those who doubt the seriousness of the new data.
"Analysts may think that these results are not as bad as many feared," said Hawkins. "But it should be remembered that the June sales continued well into July, and there was a spell of good weather in the middle of the month."
The UK as a whole felt a much smaller decline, with annual like-for-like sales in July slipping 1.9%.
"Up until now London had been holding up well against the rest of the UK but consumers have shifted some of their spending to non-central and regional centres," said Helen Dickenson, head of retail at KPMG.
"The ongoing effect is more worrying for the Capital, as this may reflect a permanent change in personal shopping habits."
