Loss leaders are an inexpensive option available to less well-off customers.  The use of heavily discounted loss-leaders is good for shoppers, especially low-income consumers, who are most appreciative of a bargain that will help them stretch their limited budget. Customers are not stupid but instead canny consumers who are well able to see through the marketing ploys of the big retailers. Often price-conscious shoppers will stock up on the most heavily discounted items, but then go elsewhere for the rest of their shop. On the other hand, attempts in countries like France to regulate retailers have just resulted in protection for the existing firms that dominate the marketplace, and in a lack of competition, which drives up the cost of the weekly groceries for everyone. The same items can cost 30% more in France, where loss leading is banned, than in Germany where it is not and discount stores flourish1. Prohibiting this strategy will hurt consumers. 1: Economist, "Purchasing-power disparity: French shoppers want lower prices, but not more competition," May 15, 2008.