Discounters force Tesco into deeper cuts The recent arrival of Lidl and Aldi in the Irish market has intensified competition in the grocery sector over the past year, according to Maurice Pratt, managing director of Tesco Ireland. Tesco, once concerned only with the challenge of established Irish multiples, can no longer afford to ignore the "limited range discounters", as Pratt calls them. With Lidl taking full page advertisements in the Irish national press to trumpet its prices, Tesco has been hitting back by slashing the cost of staples such as milk, bread, sugar, butter and eggs. Some Tesco prices are lower than a year ago, which has led to supplier complaints of being squeezed. But Pratt defended the strategy, saying the company had "to respond to discounters such as Aldi and Lidl, who have opened up to 20 outlets". He added: "Wherever they exist they are competition." Tesco now has 77 stores in the Irish Republic, with two more due to open shortly, one in Dublin and the other in Tralee, County Kerry. There are plans to open a further seven new or replacement stores in the next three years. Tesco Ireland reported a 7.8% rise in sales in the six months to August, following growth of 7% in the preceding 12 months. According to Pratt, the total level of purchasing by the group in the Irish market is on target to reach EUR1.2bn by next year. {{NEWS }}

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