Following riots in recent weeks, rumours of nationwide disorder midway through last week hit sales across the country, trade body UKHospitality reported on Monday.
This was as high as 40% in certain areas, the group said, with some businesses reporting up to a 75% drop in footfall.
The hit was particularly seen in coastal towns and came after the threat of riots saw people work from home and prompted widespread cancellations of the likes of coach and day trips.
“These figures are startling and shows the enormous impact the riots, and threat of further disorder, have had on our high streets,” UKHospitality boss Kate Nicholls said.