Tesco under fire from suppliers over move to extend controversial cuts

TESCO has begun to extend a controversial price cut initiative in the Republic.

This move follows a decision by the supermarket giant to cut prices by up to 25% on thousands of ranges of household goods and groceries at 11 outlets in border counties.

Tesco said the initiative has been very well received by its customers but the supermarket has come under fire from Irish suppliers.

It is trying to reduce prices here by introducing products sent from its British headquarters and is also reducing the space allotted to Irish products.

It is also seeking to renegotiate prices with the remaining Irish suppliers.

At least two of Ireland’s biggest food producers have been told they are to lose space and are therefore planning to cut jobs.

Yesterday Tesco said the prices of 12,500 products at its stores in Mayo andGalway have been reduced by an average of 22% adding that a typical family will now save up to €100 per month on grocery shopping.

Tesco said this is the first stage of the roll-out of the price cut programme at its 116 Irish stores.

Store manager at Tesco Castlebar, Seamus McGowan said: “Consumers who have taken to travelling to the North for shopping will now find it just as cheap to shop in Tesco stores.

“We have retained all familiar Irish products and brands which have proven their popularity with customers over the years.

“We will also continue to work in partnership with local producers selling only fresh Irish beef and fresh Irish lamb as well as all of our milk coming only from Irish farms.”