THE COST of shopping in the Republic remains almost one-fifth dearer than in Northern Ireland in spite of the retail price war, a new survey has found.
A basket of common groceries in Tesco costs on average 18 per cent more in the retailer’s stores in the Republic compared to its outlets up North, according to the survey by Consumer Choice magazine.
The price differential for some items was as high as 37 per cent, and 24 of the 25 items surveyed were cheaper in Northern Ireland.
Tesco last night accepted that prices were higher in stores in the Republic, but said the average gap across thousands of goods was 12 per cent.
This difference was explained by the higher cost of doing business in the South, as well as a difference in tax rates, a spokesman said.
Shoppers from the Republic spent over €550 million in Northern Ireland last year, sending retailers here into crisis as the grocery market shrank by over 5 per cent.
Since May, however, when Tesco introduced its “change for good” price-cutting strategy and rivals followed suit, the cross-Border exodus has diminished.
Before the price war, surveys showed a price gap of 30 per cent between North and South. The revelation that much of this differential is still in place could give renewed impetus to cross-Border shopping and cause problems for retailers in the Republic in the run-up to Christmas.
Consumer Choice, which is published by the Consumers Association of Ireland, claimed shoppers were misled over the extent of price drops. It pointed out that Tesco said it was introducing “Border prices” in its Southern stores with average price drops of 22 per cent across thousands of items.
The survey shows that, for instance, loose broccoli costs 37 per cent more in Tesco stores in the Republic, while parsnips and a Walls Cornetto Strawberry six pack both cost 34 per cent more.
A two-litre bottle of Flora sunflower oil was 30 per cent dearer, while Tesco boil-in-the-bag rice, olive oil, kitchen foil and bleach, and Johnson’s baby oil, were all at least 20 per cent more expensive.
Only one product, Tesco kitchen towels, were cheaper in the South; it cost 6 per cent less than in the North.
“Prices for many products here remain stubbornly high,” the magazine comments, “so the issue of high prices in Southern shops on a range of products has not gone away.”
While price differences could be due to higher operating costs in the Republic, the magazine says major retailers should disclose the profit margins in their Irish divisions to introduce transparency into the debate. It casts doubt on the “change for good” claim by pointing out that the price of one item, Bulmers cider, rose by 10 per cent.
RGdata, which represents smaller grocery businesses, said it agreed that customers were being misled. Chief executive Tara Buckley said it had complained to the National Consumer Agency and the Advertising Standards Authority of Ireland about Tesco’s advertising claims, but had yet to receive a response from either.
“This report underpins the need for an independent consumer advocacy body, which is not tied to the State and which is not afraid to criticise big business,” she said.