A major report by an international property consultant has confirmed fears that towns close to Southampton could be badly hit by the phenomenal early success of WestQuay shopping centre. "Eastleigh, Fareham and Winchester are likely to be hardest-hit and, as in similar situations throughout the UK, will inevitably drift back to providing local and specialist trading," says King Sturge in its Metropole report covering business trends on the south coast. But Winchester city centre manager and retailers said that the new shopping giant was not having a bad effect. King Sturge said: "The Winchester economy is under attack on two fronts. First, redevelopment of WestQuay will have a serious impact on its city centre. "This will inevitably lead to further marginalisation of the central retail core in a city which has never been favoured by mainstream retailers. "The recent configuration of Beales department store and a larger Waterstones bookshop are an insufficient defence. Second, the continuing failure of the city council to allocate further employment land immediately adjoining the M3 severely restricts the potential of the city to attract major employers." While this provided buoyant industrial rents "...the long-term effect is to drive major employers towards Southampton and Basingstoke in search of suitable sites." Winchester retailers face more competition next year when Festival Place, a scheme to rival WestQuay, opens in Basingstoke. Developers, Grosvenor Estates, are pumping in £350m, as against the £300m Hammersons/Barclay's put into West Quay. Barbara Bryant, chief executive of the North Hampshire Chamber of Commerce and industry said: "If you were pessimistic, you could say that Winchester will be the filling in the sandwich between West Quay and Festival Place. "But I think it's a real chance for Winchester to make the most of what it's good at, which is specialist shopping. "It needs to retain the tourist trade and keep visitors in the town and build on its strengths. If it doesn't, then shopping in Winchester can't survive on a resident population of around 30,000 alone. "I'd say WestQuay exacerbates the challenge already faced from Hedge End." First reactions from city retailers were that they are not doing at all badly considering people's obsession with the WestQuay giant. Richard Nash, city centre manager, said that he has canvassed 50 retailers about the effect and of the 42 who replied, only six said there had been a big effect, 14 said there had been a little effect and 22, none at all. "A big impact was anticipated, but it has not been born out by experience to date. I think you need six months to make a balanced assessment. "It has not hit us that badly. I think the key thing is that is has propped Southampton up as a regional centre, it has brought people into the region and this will be good news for places like Winchester. At Laura Ashley, Winchester, manager, Sarah Williams, said they had not been adversely affected. Beales manager, Gill Smith, commented: "There has been no adverse effect on our trade. We have had a lot of customers going to see WestQuay, but they are coming back to us and spending money. "Footfall in our store here in Winchester is possibly a little lower on Saturdays than it has been, but it is not having that bad an effect."