I also have my candles in a local craft mall and for a while I was the only candlemaker there. We don't make a ton of money but it pays the rent on our space every month and gets our name out there. A couple of months ago, another candlemaker moved in. Actually, someone on this board. She's become a good friend in this industry and I wouldn't hesitate to point people to her (and have done so in the past) if I don't have what they're looking for. I make paraffin candles and she makes soy. I was unsure what would happen to my sales when she moved in because she's been doing this for a bit longer than I have and has a rather large following. After a couple months, I haven't noticed any change in my sales at all. Even though I'm talking about soy vs. paraffin candles here, it's the same thing with soaps. Even if you're both doing CP, HP or M&P doesn't matter. I highly doubt you're both using the same recipes and/or fragrances. My suggestion would be to have the owner talk to this other person and ask her to give it a little time to see if it hurts her or not. Heck, the competition might even help her.