Tesco disputes finding of price survey

TESCO HAS disputed the findings of an Irish Times survey which found that a basket of randomly-selected goods at one of its stores…

TESCO HAS disputed the findings of an Irish Timessurvey which found that a basket of randomly-selected goods at one of its stores was 20 per cent more expensive than at German discounter Lidl.

The survey was based on a basket of items that included bread, milk, sugar and butter available in Tesco's store in Baggot Street, Dublin, last week.

It was rechecked last Tuesday, three days after Tesco had begun a grocery promotion involving what the retailer says are price cuts on 3,000 products, with a further 2,000 price cuts to come.

The survey involved taking whatever products were available in selected stores. Where there was only one product under a category heading, the price of that product was used in the survey.

READ MORE

Where a number of products were available, the aggregate price was taken from the available range.

For instance, in the case of chicken, the price given for a Tesco kilo of chicken at €5.28 was based on the average between a standard and free-range chicken.

The survey found that the cost of 13 items in Tesco at €38.35 was 20 per cent more expensive than Lidl's figure, which was €31.92.

Tesco has produced an alternative basket of the same foodstuffs that it claims is almost as cheap as at Lidl.

It includes carrots (€0.99/kg), potatoes (€0.53/kg), chicken (€3.61/kg), beef mince (€7.50 kg), butter (€5.24/kg) and a sliced loaf (€0.60), all from its "value range". Tesco prices its own-brand orange juice at €1.25 and its milk at €0.87.

Together, Tesco estimates that such a basket of essential food stuffs would cost €32.98, just over a euro more than at Lidl.

Tesco has also pointed out that its standard chicken at €3.61 a kilo is the same price as at Lidl.

Lidl does not sell free range chicken.

Tesco also says that its own-brand corn flakes at £1.44 per 500 grams compares favourably with Lidl's Cornfield corn flakes, which cost €1.78.

Meanwhile, the Labour Party has expressed concern at the difference in prices between goods in the Republic and Northern Ireland, as shown by the survey.

Dunnes Stores goods in the Republic were 16 per cent, Tesco 10 per cent and Lidl 5 per cent more expensive than equivalent products in the North, the survey found.

Labour's consumer affair spokesman Senator Brendan Ryan said high food prices were "disproportionately hurting low-income families".

Ronan McGreevy

Ronan McGreevy

Ronan McGreevy is a news reporter with The Irish Times