Multiples 'should be forced to publish turnover and profit'

Supermarket multiples should be forced to publish their turnover and profit figures, an Oireachtas committee was told yesterday.

Ms Tara Buckley, director general of the grocery trade representative group, RGDATA, said not all members of the retail grocery trade were as forthcoming with their figures as the members of her organisation.

She told the Joint Oireachtas Committee on Enterprise and Small Business that the main multiple retailers and discount chains go to "inordinate lengths" to conceal their Irish turnover and profitability.

"It is wrong that large companies that have a significant influence on people's spending power are permitted to be so secretive about their operations in this market place," she said.

RGDATA represents 4,500 independent grocers, from small supermarket groups to individual local outlets. Ms Buckley said the net profit margin earned by members averaged 2.65 per cent.

Mr Phil Hogan TD, Fine Gael, said the committee had heard "hints" from Tesco Ireland on Tuesday that it had a margin of between 4 and 6 per cent.

The committee is conducting an inquiry into the high cost of groceries in the State and related matters. Ms Buckley said that as far as her members were concerned "there is no great mystery as to why food prices are dearer here than in other countries.

"The plain and simple reality is that doing business in Ireland costs more than elsewhere throughout the euro zone. The fact that more than 50 per cent of food imports into the State come from the sterling zone is another significant factor impacting on food costs."

She said RGDATA members had a 45 per cent share of the retail grocery market. The Groceries Order and the Retail Planning Guidelines which, respectively, prevent below-cost selling and the construction of hypermarkets, have played a key role in encouraging competition, Ms Buckley said.

Out of town superstores would "suck the business out of town centres" and lead to the closure of many RGDATA members' outlets. Also, allowing below-cost or "predatory" selling would lead to closures and increase market share held by the multiples.

"Those who seek to blame the Groceries Order and the Retail Planning Guidelines for the high price of food have failed to produce any statistical data to back these claims," she said.

Labour's Mr Brendan Howlin said the committee had received submissions from all the major retailers and none had sought changes to the Groceries Order or the planning restriction. "There is no great push there."

The committee is to resume its inquiry next Wednesday.