Shop managers in High Road, South Woodford, say the street is becoming a "ghost town" with businesses closing and customers disappearing.
John Russell, 60, manager of the Oxfam shop, said his customers have halved in the past two months, leaving his store on the brink.
And other bosses blame new stringent traffic measures, claiming CCTV cameras outside Funky Mojoe nightclub have been altered to catch parking offenders.
Akif Kara, 38, of Kebabland, Ozzy Karatas, of Woody’s Food & Wine, and Andy Panteli, of Gatehouse cafe, all say the traffic restrictions are deterring shoppers from visiting the area.
Gales Camera shop, which has been a feature in High Road for 40 years, is due to close down later in the year and the Artisan art gallery closed a month ago.
Ozzy Karatas, 30, said: "I still get fines all the time just trying to stock up my shop. I appeal and they revoke them. It’s a complete waste of my time and their time."
The council has been asked for a comment.
For more on this story see next week's Wanstead and Woodford Guardian - out on Thursday.