SMALL retailers at the Tweed's largest shopping centre are struggling to make ends meet as they face increasing costs and dwindling patronage.

Several business owners at Tweed City Shopping Centre have approached the Tweed Daily News concerned about their future, blaming the centre's new dining and entertainment precinct, The Cove, which opened in October 2016, for taking passing trade away from their wing on the eastern side of the complex near Coles supermarket.

At least four businesses have reported they have lost an unretrievable amount of revenue, with one business admitting to having lost almost $200,000 in 12 months.

Diamondtime Jewellers owner Shane Scannell said his business had experienced a significant drop in customers since The Cove opened and while he was trying his best to get more people into his store, the costs kept adding up.

"There was one day that I did a half-price sale in the shop all day and from 2pm to closing time I didn't get one customer, even though it was all half price,” MrScannell said.

"You end up losing good-quality staff because you can't afford to pay their wages, then your customer service lacks because you haven't got the staff to meet the demand to keep them coming in.”

Many businesses are in negotiations with centre management over potential rent increases at the end of their lease.

Bucking Bull franchisee Tom To said another rent increase could mean he wouldn't be able to afford to stay at Tweed City.

"I don't want to leave this place, this is home and we're part of the community, but my hands are tied,” Mr To said.

Earth Market owner Marie Rouse said she was worried centre management was focussing too much on promoting The Cove and other large retail stores to the detriment of smaller retail outlets.

"The ideal thing to do would be to advertise what's around (each) area on the billboard,” Ms Rouse said.

"They're directing people (to The Cove) instead of directing to us. We want to stay here but we just need help.”

Bean Inn owner Christine Lynas said she'd seen at least three shops close near Coles in the past nine months because of the reduced traffic.

"When I've spoken to some of the retailers around here, they're talking about numbers of around 13 to 16per cent down, and that wipes you out,” she said.

"Traffic is down, sales are down and all your costs still go up.”

Despite the uncertainty about their future, the business owners said they wanted to work with centre management to find a solution that suited everyone.

"All we want to do is run our businesses, make a decent living and get a fair rent and be able to survive instead of losing everything,” Ms Lynas said.

Meanhwhile, Tweed City Shopping Centre management have defended their business expansion and marketing strategy, saying they are focussed on delivering the best outcome for the region.

In a response to the Tweed Daily News, Tweed City regional property manager John Cooper said the centre was a "major shopping and lifestyle destination in the region, offering a strong mix of retailers”.

"The shopping centre attracts over six million people movements a year, providing a range of experiences for the community to enjoy,” MrCooper said.

"We are constantly evolving and reviewing our retail mix to ensure we deliver a range of stores that meet the community's expectations.

"Retailers are attracted to Tweed City as the shopping centre is a key community hub offering convenience and variety in a growing marketplace.”