Allegations over child labour could be disastrous for one of the most popular names in the high street.

Bargain fashion retailer Primark, which has two large stores in Brighton and Crawley, was accused by BBC programme Panorama of using suppliers in India which were shown to employ children for meagre wages.

Although the chain reacted swiftly in axing the firms mentioned, a survey since the show was broadcast revealed that four in ten customers would think again about shopping at Primark following the revelations.

The retailer blames Panaroma's findings on the fact that suppliers had been sub-contracting embroidery work without its knowledge.

Despite this reassurance, the ICM research poll, commissioned by retail magazine Drapers, found that 42% of people who shop at Primark said they were less likely or a lot less likely to shop at the retailer directly because of what they had heard.

Of those questioned, 68% had heard about child labour allegations and 38% were aware of issues with suppliers in India.

If the customers polled do decide to stop shopping at Primark it could have a huge knock-on effect on the retailer.

The chain is renowned for its cheap cloths and is able to keep prices down by relying on a large number of sales.

A loss of more than 40% of its customers could be significantly damaging, while even a loss of just 5% could harm profits significantly, a retail expert told Drapers. Soozie Campbell, city centre manager for Brighton and Hove, said the results of the poll could be "disastrous" for Primark.

She added: "They are not making a lot of money from each customer so they need lots of them. Without the volume they will not make the turnover."

Ms Campbell believes Primark deserves praise for its quick reaction to the Panorama findings.

She said: "They reacted well and very quickly to issue a statement before the programme. They immediately axed the three factories from their supply chain.

"Primark is a big operation and it is hard to keep track with who is dealing with who."

No one from Primark was available for comment yesterday.

Moving away from the specific allegations of child labour, Ms Campell believes those in the retail sector that use a high-volume, ultracheap business model, adopted by stores like Tesco and Matalan, as well as Primark, could be in danger of putting some customers off.

She said: "Maybe they are losing sight of just how cheap they need to be. Most people would happily pay double what they charge and still feel it is a bargain.

"If they are selling stuff at £4 what is the point in them selling it for even less? It's almost too cheap to be attractive.

"There is a danger they are too cheap for their own good. Intelligent people will make the conclusion that someone must be suffering somewhere as they believe it is not possible to pay £1 for a T-shirt.