Next to cut prices by 10% amid Brexit uncertainty

The British retailer Next is to cut prices in all of its stores in the Republic by 10 per cent from Tuesday morning.

The price reductions will take effect both in-store and online.

Next will be the first major retailer operating in both the Republic and the UK to pass on significant savings to Irish shoppers following the collapse in sterling after the UK's Brexit vote .

In the middle of October last year, £1 was worth €1.36; today it is worth about €1.12.

A year ago, €1 would have bought you £0.74. At the time of writing, it would have bought you £0.89. That marks a depreciation of close to 20 per cent in a year.

While the collapse in sterling should mean that products coming from UK suppliers become significantly cheaper in the Republic, there has been little evidence of any savings in recent months.

Price discrepancies

In recent weeks, retailers have come under fire as price discrepancies between goods sold in the two jurisdictions become harder to defend.

In some cases, identical products cost in excess of 40 per cent more in the Republic than in the UK, a situation which has led to British chains facing charges of profiteering at the expense of Irish consumers.

In announcing a universal price reduction of 10 per cent, Next is likely to put pressure on other retailers to follow suit. This could result in some significant price falls in the run-up to Christmas.