BUSINESSES in the borough say they have suffered from falling trade six months on from the opening of the Westfield megamall in Stratford, but remain hopeful for the future.

The £4 billion centre, located just over the Waltham Forest border, has drawn millions of visitors to its 236 shops since September but is also thought to have sucked trade away from surrounding areas.

Business group heads told the Guardian that the increased competition, combined with the economic downturn, has had a noticeable effect on Waltham Forest.

But many remain cautiously optimistic for the coming year, particularly with an expected boost in trade during the Olympic Games.

Michael Polledri, chair of the Waltham Forest Business Board, said: "There's no doubt Westfield has been a massive challenge for the local shops.

"Restaurants in particular have been affected because there's something like 70 of them at Westfield, which is a challenge.

"But to be frank many smaller businesses were already struggling due to the economic climate and the competition from shopping centres like the Mall in Walthamstow.

"We have seen some helpful initiatives such as the council's grants for new shop fronts in Leyton High Road, an idea we suggested, and the relaxation of some parking restrictions.

"What would really be helpful is a reduction in the valuation of businesses, as business rates are going up again this year."

Gianluca Rizzo, coordinator of the Leytonstone Business Improvement District (BID) organisation, agreed.

He told the Guardian: "Anecdotally I would say the majority of businesses in Leytonstone, perhaps around 80 per cent, have been negatively affected.

"It's difficult to gauge how much of an impact Westfield has had because of the economic situation, which is also an important factor, but there are many businesses who believe it has had a direct impact.

"A small number, such as estate agents, have benefited and some, like accountancy firms, have not been affected because there is no direct competition.

"We're lobbying for a reduction of the rateable value of businesses in the area and liaising with government agencies on behalf of traders in Leytonstone to try and help."

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