Price war will cost jobs, says RGDATA

RGDATA, the organisation representing independent retail grocers, has warned that a price war between Dunnes and Tesco will lead to job losses among food suppliers and food retailers, unless the Director of Consumer Affairs intervenes.

This follows Dunnes Stores announcement of a 61% cut in the price of frozen foods.

RGDATA Director General, Ailish Forde, claimed that these discounts were unsustainable and place independent family owned stores, suppliers and distributors under immense pressure.

Forde said the level of discounts offered by Dunnes Stores' latest promotion was likely to involve below cost selling, in contravention of the Groceries Order.

She also claimed that the steps taken by Dunnes Stores are highly irresponsible and would push some food suppliers close to the edge.

She called on the Director of Consumer Affairs to intervene immediately to investigate if Dunnes Stores are engaged in below cost selling.

She emphasised that Dunnes Stores should not be allowed to breach the terms of the Groceries Order and must be held accountable for any breaches that have occurred.