While that certainly has the desired effect of reducing car traffic to the area, it also increases the difficulty and expense of travel to the area. We’re seeing this in Oakland now, where they’re putting in bike lanes and taking away parking, while simultaneously doing nothing about the limited public transportation system.
If you want to reduce vehicle traffic without seriously impacting the shops and restaurants in the area, you have to use both knobs available to increase people’s use of public transportation: make it harder and more expensive to drive a car, while also making it easier (and, preferably, cheaper as well) to take transit. One without the other is a disaster.