Tesco Ireland has defended itself against claims of overcharging after a survey released by another supermarket chain claimed Tesco branches in the Republic charge an average of 15 per cent more than stores in Britain or Northern Ireland.
Corporate affairs manager Dermot Breen said prices were higher in the Republic because transport, distribution, wage and waste costs were higher.
He claimed the price difference between Tesco stores in the Republic and Britain/Northern Ireland was under 10 per cent. "Tesco's margins in the Republic are no greater than in the UK," he said.
Tesco Ireland does not publish profit figures separately from its parent group.
However, its rival in the UK, Asda, said the findings showed the need for a new entrant to the retail market to deliver better value for the consumer.
"If we weren't driving down prices, UK consumers would be paying far more for their groceries, like Tesco shoppers are having to in the Republic of Ireland," said Andy Bond, chief executive of Asda.
However, a spokesman denied that Asda was planning to enter the market in the Republic, either by buying an existing chain or opening its own stores.Persistent rumour has linked the chain to a possible purchase of Dunnes Stores.
"One should say 'never say never' but we're not planning any move into the Republic at the moment," the spokesman said. Asda runs 13 stores in Northern Ireland, with more planned.
Earlier this year, the National Consumer Agency published research which showed the prices in the main retail chains in the Republic were remarkably similar.
The latest survey covered over 4,000 products and was obtained by computerised trawling of prices on the internet. Asda said it did not carry out the survey but decided to release the information after "it was put our way". Asda declined to say who had carried out the survey, apart from claiming that it was an "independent" market research company.
