Calls for supermarkets to reveal profits

THE Enterprise Minister is coming under pressure to force the big supermarket chains to open up their books and reveal their profits.

Representatives for family-owned shops and stores have told Tánaiste Mary Coughlan that her proposal for a voluntary code on standards in the grocery sector is “worthless and unenforceable”.

The Retail Grocery Dairy and Allied Trades Association (RGDATA) is demanding legislation be introduced which would force retail giants like Tesco and M&S to reveal the money being made off Irish people.

The group’s director general Tara Buckley said: “The largest players in the market here shroud their profits in secrecy and do not reveal them to the outside world. This is wrong – suppliers, consumers, and competitors, should not have to play a guessing game in the dark about the profitability of these retailers in Ireland.”

RGDATA made a submission to Ms Coughlan’s department this week, following consultation announced by her during August on the grocery sector.

Ms Coughlan is looking at a code of practice following debate about grocery prices, north and south price differentials and questions as well as the relationship between suppliers and retailers.

The minister sought opinions on whether the grocery sector needed an ombudsman and whether a code of practice should be voluntary or statutory.

RGDATA said it wanted the offices of the National Consumer Agency and the Competition Authority to be reformed, to help root out abuses in the sector.

Ms Buckley added: “We would like to clarify at this point that independent, family-owned shops do not engage in practices such as demanding hello money, shelf space payments, promotional budgets or other ad hoc payments from suppliers.”

The retail representatives said they were very aware that “large players in the market do engage in these practices”.

IBEC, who represent large retailers, were not available for comment last night.