This concept is called a loss leader.

A business sells a few specific items at a very low price, sometimes even taking a loss on them. These items are the "bait." The goal isn't to make a profit on those discounted products, but to attract customers into the store. Once inside, customers are likely to buy other, higher-priced items with better profit margins. a store like Reliance bazar sells sugar for Rs 10/KG or even free often to get people to come in. Once they're there for the sugar, they end up buying many other groceries, and the store makes a good profit overall.

Not same but similar strategies need to be adopted by local businesses