Thursday, June 19, 2008

Groceries cost a third more in Republic

Dublin- Republic of Ireland shoppers are forking out almost a third more on groceries than those in Northern Ireland, a survey suggests.
The research carried out by the National Consumer Agency shows that branded goods cost up to 31% more south of the border. The difference is less for supermarkets' own branded products, but the NCA's Chief Executive Ann Fitzgerald insists that shoppers are losing out because of the lack of competition among supermarkets.

The agency conducted the survey at Tesco, Dunnes Stores and Lidl on both sides of the border.
There was a 31% difference between a basket of 42 branded goods in Dunnes Stores north and south of the border, and a 28% difference between Tesco stores. For own brand goods there was a much smaller price gap of 17% for Tesco and 11% for Dunnes Stores.
These differences were after prices of products were adjusted to take account of VAT and excise duties.
The NCA also found greater competition in the Northern Ireland grocery market than in the Republic. For a basket of 22 items in common between Tesco and Dunnes Stores, there was a price variation of €2.40 in Notrthern Ireland, while the same basket was identically priced in the Republic of Ireland at €78.53.
'Despite claims by retailers about the higher cost of doing business in the Republic of Ireland, it is interesting that there is a much lower price differential on own brand goods,' Ms Fitzgerald said.
She said Irish people tended to buy branded goods and suggested that the retailers are 'charging us for that preference'.
Ms Fitzgerald said different business models and costs in the two jurisdictions did not explain the big difference in prices of branded goods.

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