Traders in Winchester High Street have raised concerns after some stores experienced a drop in sales after market stalls were moved outside their shops.
The city council is now reviewing the situation after the city's Business Improvement District (BID), led by executive director Chris Turner, made council chiefs aware of the drop in sales.
Steve Brine said: "I am very much in favour of a healthy mix of shopping in Winchester and even of the market being in the High Street on some days each week, but I don't think the current arrangement is working and any suggestion of an increase in the number of stalls would be most unhelpful."
The council will decide over the next few weeks what action, if any, it feels it should take.
Steve continued: "We have a very high-quality High Street here and we should remember that such a reputation is hard won and easily lost. Businesses in the city need all the help they can get this Christmas, and I hope the city council will listen to the very clear message they are getting from Prof Turner and the BID team."
Find out more about the work BID does for businesses in Winchester at www.winchesterbid.co.uk.