Traders at Merton Abbey Mills are claiming a nearby archaeological dig has affected their business as customers confuse it with construction work still in the planning stages.

The work to excavate part of the medieval Merton Priory site lying under the car park adjoining the craft market, in Merantun Way, began in September.

Since then archaeologists from the Museum of London Archaeology Service (MoLAS), which is carrying out the work, with the backing of Countryside Properties Plc, say a number of exciting finds have been unearthed.

Although planning permission has not yet been granted, the company hopes to develop the site afterwards by constructing mixed-use housing and leisure facilities as well as a heritage centre to house relics found on the site.

Meanwhile, market tenants told the News they are concerned their trade has been hit by excavations churning up the car park.

Tenant Robin Green, of Greencades, said potential customers may have been put off shopping by assuming construction work on the development had started, or by parking problems.

He claimed his trade had fallen by 25 per cent over the last six weeks despite a recent door-to-door drop of more than 200,000 leaflets, funded by Countryside Properties Plc, throughout south London and north Surrey.

He said: The dig has disrupted business theres no question of it. It is down quite substantially on Sundays.

Paul Thompson, who owns Thommos, said trade had not been helped by the excavation work but things were getting better now it was finishing and people could see the car park.

He said: The car park is returning, the pub has been revamped, new stall holders are arriving, events are being organised such as the Christmas charity event on Saturday, December 14 and the Colour House Theatre continues to excel. We must not be lulled into thinking the success or not of Merton Abbey Mills is dependent simply on a development or a car park.

Merton Abbey Mills general manager John Hawks said people could easily have mistaken excavation work in the car park for a construction site.

He said the tenants had commented on how it looked and the mud. However, he did not see it as being a long term problem, particularly as the excavation work had finished.

Mr Hawks added Countryside Properties Plc had funded more than 200,000 leaflets advertising the market and were going to be supplying around £25,000 of new signs including a map.

l Weekend trading at the market with the long shop open and stalls will be extended to throughout the week before Christmas, from Monday, December 17 to Christmas Eve inclusive.