Tesco has followed Superquinn in store cutbacks along the Irish Republic's border as shoppers continue to flood into Northern Ireland for the cheaper prices.
Last month, Superquinn announced it was closing its store in the border town of Dundalk and laying off 400 staff across the network as a result of the loss of business caused by the fall in sterling against the euro.
Tesco has now confirmed that it plans to cut the hours of workers in five outlets, including Dundalk. Some 400 store staff in counties Louth, Monaghan, Cavan and Donegal will be affected, with working hours reduced to meet demand. Staff are also being asked to consider taking unpaid leave for up to a year.
The shopper exodus shows no sign of abating, despite appeals by finance minister Brian Lenihan to consumers to remember their "patriotic duty". Such is the scale of the cross-border traffic that Asda and Sainsbury's are now recorded as having a 2.5% share of the Republic's grocery market - even though neither has a store in the state.
Consumers making the weekly trek say they do so because of the value on offer and the fact that retailers in the Republic have not reduced their prices to compete with Northern Irish stores. Recent surveys show the price difference between Newry and Dundalk on a basket of groceries can be as high as 40%.
The Republic's Trade and Enterprise Minister Mary Coughlan has threatened to reintroduce price controls to force businesses to pass on the full exchange rate benefit to consumers.
In evidence to a parliamentary committee last week, Tesco Ireland chief executive Tony Keohane blamed distributors for the higher prices in the Republic, claiming they charged "significantly more" than in the UK. But the head of the National Consumer Agency, Ann Fitzgerald, dismissed this argument as "the latest in a plethora of excuses".
Wholesalers and distributors would now be asked to give their side of the story to the committee.
Last month, Superquinn announced it was closing its store in the border town of Dundalk and laying off 400 staff across the network as a result of the loss of business caused by the fall in sterling against the euro.
Tesco has now confirmed that it plans to cut the hours of workers in five outlets, including Dundalk. Some 400 store staff in counties Louth, Monaghan, Cavan and Donegal will be affected, with working hours reduced to meet demand. Staff are also being asked to consider taking unpaid leave for up to a year.
The shopper exodus shows no sign of abating, despite appeals by finance minister Brian Lenihan to consumers to remember their "patriotic duty". Such is the scale of the cross-border traffic that Asda and Sainsbury's are now recorded as having a 2.5% share of the Republic's grocery market - even though neither has a store in the state.
Consumers making the weekly trek say they do so because of the value on offer and the fact that retailers in the Republic have not reduced their prices to compete with Northern Irish stores. Recent surveys show the price difference between Newry and Dundalk on a basket of groceries can be as high as 40%.
The Republic's Trade and Enterprise Minister Mary Coughlan has threatened to reintroduce price controls to force businesses to pass on the full exchange rate benefit to consumers.
In evidence to a parliamentary committee last week, Tesco Ireland chief executive Tony Keohane blamed distributors for the higher prices in the Republic, claiming they charged "significantly more" than in the UK. But the head of the National Consumer Agency, Ann Fitzgerald, dismissed this argument as "the latest in a plethora of excuses".
Wholesalers and distributors would now be asked to give their side of the story to the committee.
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