The (crooked) shopkeeper is selling $800g$ worth of goods as if it were $1kg (=1000g)$.
Hence he's charging $\frac{1000}{800} = 1.25$ times more than he should be (if he were honest).
That's $25$% (dishonest) profit.
Usually, weighing of goods is done in front of the customer. By substituting an actually lower standard weight for a higher one (in a balance scale), the shopkeeper is giving the impression that the goods the customer is buying weigh more than they actually do (so the customer will be deceived into paying more than he/she should).