Tesco rejects Irish ‘rip-off’ charges
Supermarket objects to ‘selective’ survey
January 24 2004
Tesco has rejected a claim by an Irish political party that it is overcharging its Irish customers.
The Fine Gael party has accused a number of UK retailers of a rip-off approach to the Irish market after comparing prices charged in branches in the UK with Irish prices.
Tesco, along with Habitat and Argos, were accused of overcharging while prices at Dixons and Mark & Spencer were said to be more-or-less identical.
In the case of Tesco, a basket of five items chosen by Fine Gael’s shoppers was found to cost 43 per cent more, with one item, razor blades, costing 87 per cent more in Tesco’s Irish stores.
Tesco director of corporate affairs for the Republic, Dermot Breen, has said it was unreasonable to select a basket of just five items from more than 25,000 products it is totally distorted and misleading. Tesco said there are also significant cost differences between the two economies.
The development of Tesco in Ireland, where it is now has 80 stores and sales of €1.79bn, has been been politically sensitive as local retailers have faced fiercer competitions.
Tesco points out that it spend over €1.5bn with Irish suppliers and has created 3,000 jobs since it bought the Quinnsworth and Crazy Prices chains in 1997.
