Kingston’s big businesses lost between £3.5m and £4m during last summer’s Olympic events and felt the few opportunities to boost trade were lost.

An economic impact assessment report by Kingston University’s Centre for Economic Research and Intelligence and Go Kingston revealed how larger retailers had suffered a “significant loss” in August 2012.

It found although thousands flocked to the streets to watch and cheer on cyclists during the time trial and road races that saw Wiggo’s Corner shoot to national fame, people did not stay to spend money in Kingston.

Town centre retailers estimated a 1 per cent loss in trade from 2011 during this period but trade was still 1 per cent higher than the national average. Hospitality businesses took the greatest amount in money.

Bob Ritchie, centre director of the Bentall Centre, said: “The main focus of visitors to the town during that period was to watch the cycling events – one of the few non-ticket events last year.

“Lots of people were in the town on the three days of the events, but not many came to shop. Others stayed at home to watch the spectacle on TV and many locals could see the action from their doorstep. Catering outlets did well, others less so.

“However, the television coverage showcased many of the town’s best attributes – the river, the historic and modern buildings sitting in harmony and, from an aerial perspective, the amount of greenery in or near the town centre.

“This may have been responsible for the mini peak in visitors we experienced towards the end of August.”

One trader said: “There was some hope that attracting people to Kingston for the events would improve retail sales, but that didn’t happen, people didn’t come to shop, they came to see the event, eat, drink and went away.”

The study used 55 survey responses from businesses in the borough and also carried out eight interviews with town centre businesses under condition of anonymity.

Analysis found footfall and turnover during the events was down by up to 10 per cent for the majority of businesses, with some reporting a drop worse than 30 per cent.

Many businesses, particularly in New Malden, which did not see the Olympic torch come through, felt they were not involved in the Olympics at all.

Businesses within the main routes of the races were given a small boost in trade, but those off the track were not so lucky and reported the “worst day ever for their business”.

In the report, one trader said: “I think people mistakenly assume that it will be brilliant for businesses, and that tourism would be amazing; I think people just got their hopes up a bit too much... but it turned out to be a lot less profitable than everybody thought.”

With shoppers worried about road closures, the Cattle Market car park lost out on about £10,000 despite being open.

The study said the loss in trade felt by major retailers had been offset by gains for smaller businesses of up to £1.7m, spent by an estimated 50,000 visitors on event days – but this figure could not be verified.

Author Peter Garside concluded: “It could be assumed that the total impact on the local economy was, at its worst, neutral or, at its best, a reasonable level gain.”

He added that in order for Kingston to maintain its profile against the decline facing town centres “it cannot afford not to undertake and engage with these types of activities”.

Councillor Simon James, Kingston Council’s lead member for sport and Olympic legacy, said: “Overall the Olympics were a fantastic success for Kingston. The council, businesses and the community responded positively to the challenge of hosting such large-scale events and managing huge crowds. There was a real feel-good factor.

“We want to understand all the Olympics effects, positive and negative, and the lessons from this research will influence our planning for big events in the future.”

The study found the borough’s Olympic involvement to have positive effects on residents such as an increase in membership at swimming baths at Kingfisher and Malden Centre.