Hilton Goodsir, who owns the Homebrew Inn and Beer & Gear store on the Pacific Highway, said the parking system, introduced in April, had "scared a lot of people away from Charlestown".

Mr Goodsir urged Charlestown Square to reconsider its parking system and ease restrictions.

He said retailers, including those in Charlestown Square, were reporting an average loss in trade of 20 to 30 per cent over the past few months.

Charlestown Square centre manager Peter Francis said the parking system had created "ample parking" for customers because it prevented workers parking in its southern and northern car parks, which had a combined 1800 spaces.

"Parking is free for [people] who come to Charlestown Square shopping centre to shop," Mr Francis said.

Parking for the first three hours was free and shoppers that spend $50 or more at any combination of stores could park for free all day.

Choice Homewares owner Ken Chan said he closed his Charlestown Square store two weeks ago because of a 70 per cent drop in trade, which he mainly attributed to a loss of car parking spaces due to the centre's redevelopment and the paid parking system.

Mr Chan said Charlestown Square centre management had refused to renegotiate its monthly rent of about $19,000.

Mr Francis said Choice Homewares had "never approached the centre to ask for rent support".

"Charlestown Square management have been meeting with retailers to ensure they are fairly supported through the development and retailers in need have have been given assistance," he said.

Mr Francis said increased fuel prices and interest rates had placed pressure on discretionary spending.

He said Charlestown Square's sales had fallen 5 per cent over the past year, compared to the previous year.