All-out stores war as prices slashed

AN all-out supermarket price war has broken out with all the major retailers slashing prices in a bid to lure shoppers.

SuperValu yesterday entered the fray announcing €200 million in price cuts and special offers in its 194 stores across the country.

The move comes just over a month after Tesco said it was to cut prices by importing produce directly from Britain.

Dunnes Stores, Lidl and Aldi have also announced price reductions on a range of products in their stores.

SuperValu estimates the cuts will see the cost of an average weekly trolley drop by €30, from €129 to €98, a reduction of 23%.

SuperValu managing director Donal Horgan said the retailer was committed to its Irish suppliers and was only cutting prices not jobs.

There are to be 2,000 permanent price cuts.

“We know people want to buy Irish. This campaign allows them to do this, while spending a lot less. All we’ve cut is our prices, we have not cut our commitment to Irish suppliers and Irish jobs.”

Mr Horgan said in-store promotions would also help cut the cost of consumers’ weekly spend.

“Today’s investment amounts to €86m in additional price cuts for consumers and brings to €200m SuperValu’s overall price investment programme for 2009.”

Chief executive of the Consumer Association of Ireland (CAI) Dermott Jewell welcomed the announcement by SuperValu

However, he said the move showed Irish consumers were paying excessive prices in previous years.

Mr Jewel said: “Long may it continue. The more prices that are reduced to reasonable and affordable levels for consumers the better.

“It does serve to highlight that these cuts have been possible for a long time. There are no rounds of applause from the CAI on this, but long may it last.”

Chief executive of the National Consumer Agency (NCA) Ann Fitzgerald welcomed the move by SuperValu: “The NCA welcomes SuperValu’s introduction of lower grocery prices.

“Following similar price reductions from Tesco and Dunnes Stores, we’re looking forward to the benefits that consumers will experience from increased competition which this should bring to the Irish market.”

Currently, three-quarters of all produce on SuperValu shelves is sourced or produced in Ireland.

All of the retailer’s branded beef, lamb, chicken, pork and bacon is Irish-produced, while 65% of its fruit and vegetables are sourced in Ireland.

According to SuperValu, these purchases are worth in excess of €2.8 billion annually to the economy and indirectly support 14,000 Irish jobs.