They harm small producers
Discount chains leverage extremely low prices by negotiating hard with suppliers and maintaining low costs (limited product selection, simple shelves, etc.). This can be especially damaging to small agricultural producers or foreign suppliers, who are forced to accept low prices to stay in the market.
They produce an unsustainable environmental impact
Environmental groups criticize discount-linked farming practices because they incentivize low-cost production that can aggravate environmental problems such as excess nitrates in water and the intensification of industrial agriculture.
They deceive consumers with fake discounts
Recent court rulings have also hit chains like Aldi for misleading advertising practices (for example false discounts where prices were first increased and then reduced to appear as a sale).
Discount store workers are less protected
Big discount chains have been criticized for difficult working conditions and poor protection of workers' rights, with employees complaining about high workloads and rigid shifts.
German discounters are a very clear example of how, throughout the consumer universe, the word "sustainability" is exploited for operations that are anything but sustainable. As explained in this book.
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