Mr Spence said particular cars visited the area to pick up and drop off beggars, who returned showing signs of drug use.
Last week a member of the public, who wished to remain anonymous, said they saw a physical fight break out between several beggars on the street.
After swearing and yelling, one of them was punched and hit a building with his head.
The witness said that with darkness descending earlier as winter approached, the situation was scary and they were worried matters would be dealt with only if the violence escalated.
"Nothing is going to happen unless something really bad happens.
"How far does it have to go until the situation is sorted out?"
Posters discouraging shoppers from giving food or money to beggars had been put up throughout the shopping centre, with one store representative saying its poster was taken down and "ripped up" by a beggar after being in the store for one week.
While Mr Spence said begging activity outside his shop hadn't affected business, customers were being intimidated and it wasn't conducive to a "good feel" in the business area.
"I think that if it continues people will start voting with their feet."
Onekawa New World owner Kerry Stanley said two individuals had been issued trespass notices after the supermarket received numerous complaints from customers.
Mr Stanley said the police had spoken to them several times and the trespass notices were issued because the individuals were "disturbing the peace".
Mr Spence said the Napier City Council's campaign launched this week to try to combat begging was a good move and donating to voluntary agencies was the "right channel" for the money.
He said staff breathed a "sigh of relief" when they arrived at work and the beggars weren't present.