Tesco Ireland launched price cuts today which they claim could save the consumer up to £10 million per annum and rejected criticism of its pricing campaign.
The company rejected claims by the Retail Grocery, Dairy and Allied Trades Association (RGDATA) in May of this year that prices of leading brands at Tesco had increased by 18.35 per cent over a 14-month period.
Tesco today said average price cuts of 14 per cent were being introduced across 194 lines including Kelloggs, Golden Vale, O’Kanes and Fairy.
A spokesman for the company said 70 per cent of price cuts introduced under the Forever Cutting Prices campaign in the last year remained as low or lower now than when they were reduced.
A previous Tesco price reduction of up to 12 per cent on branded goods in April 2001 was welcomed by the Chief executive of the Consumers' Association of Ireland (CAI).
However, today’s move was criticised by some of Tesco’s competitors. Musgrave Supervalu-Centra said the Tesco claims were exaggerated.
"All that Tesco is doing is temporarily reducing the price of a of a handful of low-value, low volume items . . ."
A spokesman for Superquinn said their Euroshopper brand matches the cheapest prices available so the company did not engage in short-term price campaigns.
He said the level of competition in the Irish market - which now includes Aldi and Lidle ensured value for Irish customers.
No spokesperson for Dunnes Stores was available for comment.
The Office of the Director of Consumer Affairs was also not able to confirm today if they had investigated concerns raised by RGDATA.