Loss-Leader

The practice emerged in early 20th-century American retail, with the Great Depression accelerating its adoption as struggling retailers offered staple goods below cost to lure shoppers. A classic early example was Gillette's razor-and-blade model, selling the razor cheaply to generate ongoing blade sales. By the 1950s, supermarkets and department stores had formalized the strategy, using cheap staples to drive foot traffic and cross-sell higher-margin items.