Tesco geared for price war

first_imgSuppliers fear for futureTESCO stores in Limerick are shortly to close for business over a weekend period to restock shelves with new brands of produce selling at significantly reduced cost to customers. A spokesman for Mandate Trade Union told the Limerick Post that the industry had changed and their priority was to protect the jobs of their members. Mayor of Limerick John Gilligan has also expressed his concern. The Limerick Post has been informed bySign up for the weekly Limerick Post newsletter Sign Up a supplier that following the closure of Tesco stores in the Dublin area over the weekend, for the launch of new products, the majority of which will be English and foreign sourced, similar restocking programmes will be rolled out in Tesco’s Limerick stores “within weeks”.A sales agent of a leading Irish supplier of foods has confirmed that Tesco will be discontinuing their brands in favour of an English manufactured substitute.“Tesco is one of our top customers in Limerick and loss of their account will be a severe blow – they will be bringing in products that will sell for considerably less”.Not wishing to be identified, another reliable Limerick source said that already a number of Irish brands are disappearing from the shelves.“All Irish jams, but one, will be substituted with non-Irish, and Irish manufactured packs of men’s razors retailing for about 15 euro, will be replaced with foreign brands, selling for around eight euro – similarly Irish toiletries will be replaced. There will be a blitz on Irish produced goods and a complete restocking of English and foreign imports at half the cost or less”.Earlier this week, farmers in Ashbourne, County Meath, disrupted a meeting of Tesco managers over the sale of English potatoes in Irish stores.Mayor John Gilligan says he is “horrified that Tesco is taking this course of action at a time of deepest recession.“If Tesco is to no longer use Irish suppliers they should no longer have Irish support – I will be sitting down with the trade unions who will have the full support of the mayor and Limerick people on this,” he said.Pointing out, however, that competition from Lidl and Aldi has led to voluntary redundancies at Tesco, Brian Higgins of Mandate Limerick, said that Tesco’s strategy of competing with the other low cost supermarkets will be rolled out nationwide.“Although of course we would support Irish suppliers and products, there would be gains as there’s talk of Tesco taking on extra staff and giving extra hours, and especially in the present climate, where so many jobs are being eroded, we would welcome jobs being saved.”Tesco Ireland states that it facilitates 655million euro worth of exports annually of Irish origin food and other products into their Group internationally and that the company’s stores outside of Ireland are the second biggest buyers in the world of Irish food and drink.  “We will continue to work with Irish producers and continue to facilitate the export of Irish produce,” they state.Tesco management in Limerick were not available for comment. Email Previous articleThe Big Chillum FestivalNext articleDr Maurice Larocque on Motivation Weight Management admin Facebook Linkedin Twittercenter_img Print NewsLocal NewsTesco geared for price warBy admin – May 21, 2009 441 WhatsApp Advertisementlast_img

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