Get rid of the parking, sure. Extend the footpath/sidewalk into that space, sure. But the footpath/sidewalk outside their shop is publicly-owned, it's not private property. Will the shopkeepers commit to keeping clean and tidy? Will they commit to maintaining it (cracks in concrete, trip hazards, etc), or is that still the council's job? I don't think they should get to use it for free, or without some sort of commitment to maintain it.