The government has no right to tell business what it should charge for its goods.  It should be up to business what it charges for its goods; if it decides to charge less than the cost price, it must have a market-based reason to do so, and it is not the place of government to intervene. It is well-known that consumers focus on the prices of a few staple goods, such as bread, milk, baked beans, etc. So it is rational for retailers with high fixed costs (in wages, rents, power etc.) to set the prices for these key products very low, and even make a loss on selling them, because it will entice more shoppers into their stores. These consumers will also buy other products on which the store does make a profit, and overall sales volumes and profits will rise.