Tesco to cut prices of over 700 products as Aldi rules out reduction
In, That Bought Said Own Customers 10% To Can Retailer On Brand Of And Savings Brands "wide Out" Expect Tesco Week Make An Average Products Range With Of Decrease Week The A
Tesco Ireland has announced that more than 700 essential products will see prices slashed as part of a new price-cut campaign.
The retailer said that customers can expect to make savings on a "wide-range of Tesco own-brand products and brands bought week-in, week-out" with an average decrease of 10%.
Finance Minister Michael McGrath has hailed the move as a "turning point."
The supermarket has already been involved in competition with other retailers in terms of price cuts to counter the high rates of grocery inflation over the last 18 months. The price of bread, milk and butter has fallen in most supermarkets.
It comes as CSO figures found consumer prices rose by 6.6% over the 12 months to May 2023.
Speaking after the news broke, Mr McGrath told RTÉ's : "These reductions are very good news for consumers and I think will be warmly welcomed. Everybody has seen the really significant spike in prices over the last 18 months or so. So it could be a significant turning point in relation to grocery prices for consumers.
Mr McGrath added that he would "expect" other retail providers to respond, predicting that it would be a "matter of time" before similar cuts were seen across retailers.
Tesco says the cuts are a "key part of the retailer’s commitment to give customers great value on their shopping and will complement other value offerings such as Aldi Price Match and exclusive deals through Clubcard Prices."
Products being reduced include the likes of sweet potato fries, toilet paper, breakfast oats and toothpaste.
Tesco's own brand "luxury soft" toilet paper will go from €5 to €4.50, while the supermarket's own brand over chips will fall in price from €3.30 to €2.19.
Tesco Ireland Commercial Director Joe Manning said: "We’re working hard to invest in helping families, by cutting prices on hundreds of products. Committing to discounts across a hugely diverse range of items including grocery staples, household products and family favourites, demonstrates our continued commitment to offering great value and means customers can expect to find savings in almost every aisle in store or online.
"We also work very closely with our suppliers to manage their input inflation and their cost price pressures.
Meanwhile, Aldi has ruled out price reductions saying its prices are already lower on comparable products, however it will continue to monitor prices.
Aldi Ireland Group Managing Director Niall O’Connor said the retailer consistently sets the benchmark for low prices and value in the market.
"We know that other retailers try to match what we do but the simple fact is that we won’t be beaten on price, on this, or any day.
“We’ll continue to monitor prices and the market to ensure that we always have a discount versus the more expensive full price supermarkets, whether on a basket of goods or a full weekly shop and especially on our own label range, which accounts for 95% of our products.
“That’s our promise to customers, and it will not change,” he said.