ISME says lifting Groceries Order will not reduce prices

The Irish Small and Medium Enterprises Association (ISME) has expressed its opposition to renewed calls for an end to the ban on below-cost selling.

The ban was introduced as part of the 1987 Groceries Order to prevent large supermarkets from putting small retailers out of business by selling certain products at loss-making prices.

The Government's Consumer Strategy Group has now recommended that the ban be lifted, saying this would bring down supermarket prices.

However, ISME chief executive Mark Fielding said these prices would only remain low until such time as the small retailers had been put out of business.

"These multiples are not selling at below-cost just to make a loss," he said.

"They're selling at below-cost to bring in the consumer initially and then, when they wipe out their competition, they will gradually increase the prices."