Why Your Neighbours Matter More Than You Think

Most business owners focus on the wrong thing

When choosing a location, business owners often focus on:
   • The rent
   • The size of the premises
   • Car parks
   • Visibility
   • Their own products and service
All of these things matter.
But there is another factor that can have a major impact on the success of your business:
The businesses around you.

A great business surrounded by poor neighbours will often struggle more than a good business surrounded by excellent neighbours.

Customers judge the whole environment

Customers rarely visit just one store.

They judge the entire experience.

If neighbouring businesses are:

Vacant
Poorly maintained
Dirty or untidy
Offering poor customer service
Inconsistent in quality

customers tend to form a negative impression of the whole location.

Research has shown that the quality and balance of neighbouring retailers plays an important role in the performance of retail centres and shopping destinations

source:. [wpmaps.com], [shopify.com]

The Power Of Great Neighbours

The opposite is also true.

Strong neighbouring businesses help create:

More customer visits
Longer dwell times
Higher overall spending
More repeat customers
Better word-of-mouth marketing
A stronger destination brand

When businesses complement each other, everyone benefits.

Research on shopping centres consistently highlights the importance of tenant selection, tenant mix, building quality, and overall management in creating successful retail destinations.

source: [wpmaps.com], [shopify.com]

Why This Matters At The Square

Most landlords focus on filling empty spaces.

Our approach is different.

We believe every business should make the location stronger.

That means looking beyond rent and considering:

Business quality
Customer experience
Presentation
Reputation
Long-term commitment
Contribution to the overall destination

Because one great business can attract customers.

A collection of great businesses can create a destination.

Sources & Further Reading

Retail tenant mix effect on shopping mall performance

Emerald Publishing / University of Manchester / University of Auckland (2022)

https://www.emerald.com/insight/content/doi/10.1108/MIP-05-2021-0178/full/html [wpmaps.com], [shopify.com]

Impact of vacant commercial properties on communities

https://champlibre.org/the-impact-of-empty-commercial-properties-on-communities/

Effects of out-of-town shopping centres on local businesses

https://www.buspartnership.com/the-affects-of-out-of-town-shopping-centres/