Traders in Headington are predicting a bleak future and believe there is little reason for customers to shop in the area.
Shopkeepers think a lack of variety and high parking charges have led to a decline in the number of people walking through their doors.
Steve Floyd, owner of Oxford Design and Photographic in London Road, is far from upbeat about the prospects for local businesses.
He said: "The reasons for people to come to the Headington shops are not there any more. If it continues at the current rate I do not see a very bright future for Headington's traders at all.
"There needs to be more consideration given to making it easier and cheaper for customers to get into Headington, and more monitoring of the type of businesses coming into the area.
"I am not knocking any of the other traders, as they have to make a living, but there is definitely less choice for shoppers and I think that it has led to less people coming here."
Elaine Bellenger, who runs the Monaco clothing store in Old High Street, felt the area had become over-run with food outlets, estate agents and hairdressers.
Mrs Bellenger said: "The area has lost a lot of retail shops and they are not being replaced like for like.
"The last two retail outlets that closed in Headington have been replaced by food outlets. Pronuptia became Starbucks and West of Java is being turned into a juice bar.
"There are seven hairdressers and an eighth on the way, and seven estate agents. I don't know why the council has allowed it to get like this.
"Add to that problems people have with parking in the area and how expensive the car parks are and it is not good.
"It used to be a very busy, bustling area."
Car parking charges have also risen in the last year.
Oxford Brookes University student Mark Evans, 23, said he only ever went into Headington to use the supermarkets.
He added: "There is really not much in Headington. It is great if you are hungry, but if you want more choice, you really have to go into town."
Brenda McSweeney, 70, who has lived in the area for the past 50 years, said: "It forces older people, like myself, to get on a bus and go into town."
The city council says its planning department is aware of the issue. In the city centre a saturation zone policy was adopted to limit the number of pubs and bars, and traders in Headington would like to see a similar policy adopted in their area towards food outlets.
Deputy council leader and Headington councillor, David Rundle said: "I would like us to move forward on this carefully, working with local traders and the local community to find out what they want."
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