Supermarkets resist raising prices to profit from change

Supermarkets have not taken advantage of the euro changeover to raise their prices, a survey carried out by The Irish Times has found.

Seven branded goods were priced in branches of Dunnes Stores, Tesco and Superquinn before Christmas.

Both pound and euro amounts were noted in the survey, which was carried out in stores in Dublin and Limerick.

The prices of the same household products - including bread, cereal, sliced ham, biscuits and washing-up liquid - were checked again yesterday.

The cost of the groceries remained the same after the changeover.

The Director of Consumer Affairs, Ms Carmel Foley, hailed the outcome. "I welcome the results very much. I'm not astonished that you haven't found a difference but it didn't happen by accident," she said.

Ms Foley said the combined vigilance of consumers and media organisations had ensured that supermarkets were aware their prices were under intense scrutiny.

She said the three supermarkets surveyed had signed up to the Euro Changeover Code and were taking it very seriously.

Superquinn had previously announced it would freeze prices during the dual currency period, which continues until February 9th.

Ms Foley said supermarkets had also informed their suppliers they would not accept price increases which would have to be passed on to customers.

"By signing up they have pledged that they will not take advantage of the changeover," she said.

"So in this case, no news really is good news for the consumer. Honour and trust mean something. Nobody wants to be named and shamed and risk losing customer loyalty. What have they got except their reputation?"

While she was satisfied with the response of supermarkets to the changeover, Ms Foley warned consumers to be vigilant when dealing with other retail and business organisations.

She insisted the introduction should not be used as an excuse for profiteering.

"We all know there is a small minority of cowboys in every walk of life. The euro doesn't change this. It makes sense to deal with reputable people and complain if there is a problem," she said.

She said consumers should not be afraid to shop around. "This applies just as much to professional services as to buying a pair of shoes."

However, many service organisations had also signed up to the Euro Changeover Code, she added.

As queries to her office increased to 257 yesterday from 83 on Tuesday, Ms Foley said consumers should adopt a "reasonable" approach to price conversion.

They should be realistic in their expectations of what retailers could offer. Prices would inevitably be rounded up or down for the sake of convenience, she said.

"I don't think we should panic if new euro prices for some items end in an even 'nought'. Ideally, there should be just as many rounded down as rounded up," she said.