A clothes shop which has been a fixture of the High Street for more than three decades is to downsize amid claims that the recession and lack of parking is killing off businesses.

Judith Zimelstern, owner of Judith of Wanstead in Wanstead High Street, is to shut one of the store's two retail units within the next two months.

The shop, which sells upmarket women's dresses and fashion, opened 37 years ago and expanded into the building next door in 2000.

But Ms Zimelstern told the Guardian she did not want to renew the lease on the adjacent site due to fears about the future of Wanstead High Street and the long-term economic outlook for independent traders.

She said: "We've had several closures in the High Street recently and I know of many businesses which are downsizing or thinking of closing - it's very tough at the moment.

"What we're doing is just the tip of the iceberg.

"The recession has had a big impact and the poor weather too has been   crucifying us.

"But the decline in the parking situation in the High Street has made it worse, especially since Westfield [in Stratford] opened, where customers can park so easily."

She added: "Redbridge Council says it is going to release some parking spaces in the High Street but it's too little too late. We need more parking, even a new car park, something to help us.

"Our customers come from literally all over the country but if there's nowhere to park it's very difficult."

Ms Zimelstern, 67, said she had no immediate plans to retire and would expand the back of the remaining shop to compensate for losing the space next door.

She said: "I'm happy and I like my business very much, all the staff have been working for me for 30 years and we really enjoy it. 

"But the rates are astronomical and I have to pay £500 just for the council to take our rubbish away. I'm grateful we have our loyal customers who support us."

The Guardian has asked Redbridge Council to respond to accusations that it has not done enough to make parking easier in the High Street.