It's all depends on the line of business that you are into. There are types of businesses that have settings and spacing, and such need to be respected. If it's a business, they have associations; you need to check if such is allowed. In my area, there is an approved spacing for medical stores.
But if it's just a regular business where all you need is to strategise your pattern of marketing and make sure that you retain the customer you already have sometimes won't even leave you unless you were not treating them right, that's when your competitor will buy them over.
This is the difference between B2B business and B2C business. If you are doing B2B then it doesn't matter where you are and who opens a shop near you, but obviously he is a B2C shop and that means he is going to have hard time. Think of a place where it's the only shop of it's kind, and people love it, then we would just have people lining out of the shop, it would be crowded and everyone would wait and this shop would take them as customer slow by slow.
But if there is another one, those extra people would just go there, why wait? This is just one example and we need to remember we are going to see this very complicated situation as something to handle as it goes by, we can't know what to do from a forum post, so it will take a time to get this used to it.