Ireland's two leading retail chains, Dunnes and Tesco, were accused today of abusing their dominance of the market by selling certain items at below cost price.
RGDATA, the independent grocers' body said the two multiples are engaging in "macho marketing" in their current baby food promotions which have seen price reductions of up to 61 per cent in some lines of baby food.
|
The group claims the discounts are only possible through the deliberate and conscious sale of products at below cost by the two multiples.
Ms Ailish Forde of RGDATA said "This is a classic case of two large retailers, with nearly half the market share, using their muscle to put the squeeze on suppliers."
Ms Ford said the two market heavyweights are caught in a spat over market share otherwise the normal price at which they sell these products indicates gross profiteering.
The real losers if this sort of "macho marketing" is allowed to persist will be the suppliers and consumers who are being squeezed by these dominant retailers, Ms Ford claimed.
RGDATA has asked the Director of Consumer Affairs to investigate the two promotions to determine if either store is breaking the law.
Ms Ford warned of further job losses among suppliers following redundancies at Tayto and Nevilles, if suppliers are used "as pawns in this charade."