Tesco has said it is moving its border price reduction programme to Dublin, and will introduce it to all of its Irish stores by August.
It joins Marks and Spencer, Dunnes and SuperValu in a massive pitch for the newly value- conscious shopper, as lower-cost operators Aldi and Lidl gain market share.
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In May, Tesco said more than 12,000 prices were being reduced by an average of 22% in the border stores. It says the programme will apply to nine stores in north Dublin from today, with the rest of its 29 Dublin stores to follow in the next two weeks. The programme will go nationwide by August.
Tesco Ireland chief executive Tony Keohane told RTE radio this morning that the border initiative had gone well. Tesco said an extra 25,000 customers had visited its stores and trade had risen by an average of 30%.
It claims that €50m less will be spent in the North this year as a result of its initiative, rising to €200m next year. Mr Keohane rejected suggestions that the company had moved some prices back up.
Tesco and others came under fire from Irish food producers last week over what producers claimed was reduced shelf space for Irish products. Mr Keohane denied Tesco had reduced its reliance on Irish producers, saying it was a 'massive supporter' of Irish agri-business.
But the Tesco chief said the company looked at all product lines it carried - Irish and international. He said the products customers were buying remained, but those people were not buying were removed. Mr Keohane said it was 'completely erroneous' to suggest that Tesco did not carry Irish products that people wanted to buy. Mr Keohane said 40-50% of Tesco Ireland sales are of Irish products.
Asked about calls by a food industry body for a supermarket ombudsman and a code of practice in the sector, he said he would support anything which would reduce costs, but the last thing we needed was more red tape.
