BUSINESSES in Newport fear a bank closure could have a knockon effect for shops in the area.

HSBC in Caerleon Road will shut on June 17 and neighbouring shops worry that because people will have to go into town to use the bank, they will do their shopping elsewhere.

The two members of staff who work at the bank will be moved to another branch of the bank Newport, most likely to be the one in Bridge Street.

But traders say people who use the bank combine it with a trip to the shops and fear this could hit local businesses.

Manager at greengrocer Harry Wheeler and Sons Ltd, Jan Edwards, said: “I’ve had a lot of feedback from people who come in here because they’ve been to the bank, a lot of them said it’s the main reason they come to Caerleon Road.

“It’s going to have a big knock-on effect to shops here, something like this will drag more people into town where they will do their shopping.”

Owner of Macey Sports, Jan Macey, added: “The bank obviously pulls customers, it’s not good news at all – it’s another nail in the coffin.”

A spokesman for the bank said the decision was made to close the branch because of a fall in the number of people using it, combined with an increase in the number of people using telephone and internet banking.

Theresa Orford, 61, who lives in Surrey Place and is a regular customer at the branch, said: “Nobody can understand it, it’s a lovely branch and it’s busy – it doesn’t make any sense.”