What would you do?

You run a retail store serving a very niche market.

Business is good and your first batch of stocks sold off half of it and you broke even. Things are looking good. You are about to order the second batch of stocks, and bringing your retail business online.

Just when things are rosy, a competitor sprung out of nowhere, offering 10 times the variety of products than you. He is pricing his products at below market price, giving up his high profit margin for a bigger market share. Customers start to flock over to your competitor.

What would you do?