Tesco Ireland has today (Thursday, June 8) announced that it will cut the prices of over 700 products in its 166 stores across the country and online.
The average price decrease of 10% will apply to a wide range of Tesco own-brand and branded products, including grocery staples, household and beauty items.
The retailer said that the price cuts are part of its commitment “to give customers great value” and will complement other offers such as Aldi price match.
In recent weeks, supermarkets such as Tesco, SuperValu, Lidl and Aldi have cut the prices of own-brand bread, milk and butter in their stores.
It is anticipated that other retailers will follow today’s announcement by Tesco and consider similar price cuts in their stores.
Tesco
Commenting on the price cut announcement, Joe Manning, commercial director, Tesco Ireland 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.
“As our costs are reducing from our suppliers, we are now able to pass those savings on to our customers,” Manning said.
Inflation
In the 12 weeks to May 14, 2023, grocery inflation rose by 16.5%, which is down marginally (0.1%) on last month, according to recent data from Kantar.
Take-home grocery sales increased by 11.3% in the four weeks to May 14, as the average price per pack increased by 13.4%.
Kantar said that grocery price inflation is the real driving factor behind this as opposed to increased purchasing.
Higher food prices mean that consumers are turning to shopping little and often to help manage household budgets, Kantar said.
Shoppers visited stores more often during the month of May (11.6%) making an additional two trips compared to the same time last year.
Kantar said that own-label growth stood at 16.3% compared to branded goods at 8.2% which reflects shoppers seeking ways to save money.
Value own-label products saw the strongest growth year-on-year at 32.3%, with shoppers spending €17.5 million more on these ranges.
Branded and own-label products are now on equal terms for the first time with each having a 47.3% share of the market.