Concerned by shoppers from the Republic of Ireland flocking across the border to Northern Ireland supermarkets to buy the same produce cheaper, due to the devaluing pound against the euro, Tesco have cut prices in their border stores on 12,500 items.
Tesco have slashed the prices on goods such as milk, meat and poultry in stores close to the border by an average of 22%.
“This substantial investment will enable us to compete in the long term with prices north of the border and will remove the incentive or the need for consumers to travel, which has been bad for jobs, local economies and the national economy,” Tony Keohane, Tesco Ireland’s Chief Executive, said in a statement.
Perversely, Asda and Sainsbury’s share of the Republic of Ireland’s grocery market grew by 300% year on year in the 12 weeks to March 22, despite neither operating south of the border. Meanwhile Tesco have reported a small drop of half a percent during the same period and hope that the cost cutting exercise will enable them to grab some of the ir rivals business.
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