Traders whose shops near Bognor are due to be bulldozed say business has already slumped even though a redevelopment scheme is still two years away.

A new planning application to replace Summerley Corner, Felpham, with 14 town houses and two detached houses has been submitted to Arun District Council.

Some shops on the parade already operate on short-term leases because it has been known for several years that development was due.

But shop keepers say the publication of planning notices has harmed trade with many people believing the parade has already been pulled down.

Summerley Corner includes a restaurant, butcher's and greengrocer's. A post office is expected to be relocated nearby.

Greengrocer Ivan Hausdoerfer said: "Some people think the parade has already been pulled down or is coming down in the next few weeks. At the moment it is dead."

He estimated his trade was down by two-thirds. "The planning notice has been the final nail in the coffin."

David Butcher, who runs the butcher's shop, said: "Our trade has definitely slumped but there are an awful lot of people on holiday."

He added traders were upset with the council after being refused permission to put a sign on a nearby main road pointing to the shopping parade.

The developers were unavailable for comment.