IRELAND: Growing competition amongst retailers - survey

The price gap between the main Irish supermarket chains and discount stores is narrowing, but Lidl and Aldi remain more than 20% cheaper for own-brand goods, according to the latest grocery price survey.

The latest figures from the National Consumer Agency (NCA) show that there is now increased competition between the main supermarkets on branded goods, with price now the biggest factor for householders rather than convenience.

On an overall basket of 22 own-brand items, the survey found Lidl the cheapest and SuperValu the dearest.

When comparing a basket of branded goods between Dunnes Stores, Superquinn and Tesco, the difference between the cheapest and dearest basket was EUR3.60 or 1.2%. In Dunnes Stores the cost of the basket was EUR292.48 while in Superquinn the same basket cost just one cent more. Tesco was the most expensive and the groceries had a price tag of EUR296.08.

"The gap of 1.2% is the biggest variation we have seen between the multiples since we began carrying out the surveys in 2007, and suggests some repositioning in the market," said Ann Fitzgerald, chief executive of the National Consumer Agency.

"We're also seeing a drop in the number of branded goods with identical pricing. We believe that this is evidence of growing competition amongst the multiples, as they begin to compete not just with the discount retailers but aggressively between themselves."

On own brand goods, the gap between Dunnes and Tesco and the discounters, Aldi and Lidl has narrowed "significantly", NCA said. On a basket of 28 common items, Lidl (EUR34.80) are the cheapest with Dunnes Stores (EUR42.20) being the most expensive.

"Despite the positive trend towards price competition between grocery retailers, it is important to highlight that over the period of our surveys, the aggregate cost of a basket of goods has increased," Fitzgerald said.

"Retailers are changing their marketing techniques. In the past year we've seen an increase in the range of special offers by the multiples, but we would prefer to see sustained price cuts and we would urge caution among consumers, as special offers may not always deliver the best value."