Tesco may be among a number of retailers forced to disclose how much profit they make in the Irish Republic, under new proposals aimed at finding out if consumers get a fair deal.
In a report to government, a parliamentary committee investigating grocery prices in Ireland has recommended that the major multiples - including Tesco, Superquinn, Aldi and Lidl - all be required to publish their turnover and net profit figures.
“We want to see how we can bring prices down for the consumer,” said committee chairman Donie Cassidy. “To do that, we have to be able to look at retailers’ profit and turnover.”
Giving evidence, Superquinn said it had published such information in the past, but had stopped doing so because its main competitors were not revealing their financial details.
The committee noted that Musgrave, the SuperValu and Centra franchise owner, and Spar operator BWG released their figures and called for government action to make others follow suit.
Grocery prices in the Republic are 5-15% higher than in Northern Ireland or Britain, but the committee said this was caused mainly by higher labour costs, insurance, transport and waste charges. It recommended the establishment of a business costs group aimed at reducing overheads, and also publication of a quarterly price survey by the director of consumer affairs, to help shoppers find best value.
The committee called for the retention of the controversial groceries order, banning below-cost selling, arguing consumers are better served by having more shops competing.
That recommendation was welcomed by RGDATA, the grocers’ body, as was the committee’s defence of the cap on the size of outlets. RGDATA said encouraging superstores “could see town centres becoming wildernesses”.
In a report to government, a parliamentary committee investigating grocery prices in Ireland has recommended that the major multiples - including Tesco, Superquinn, Aldi and Lidl - all be required to publish their turnover and net profit figures.
“We want to see how we can bring prices down for the consumer,” said committee chairman Donie Cassidy. “To do that, we have to be able to look at retailers’ profit and turnover.”
Giving evidence, Superquinn said it had published such information in the past, but had stopped doing so because its main competitors were not revealing their financial details.
The committee noted that Musgrave, the SuperValu and Centra franchise owner, and Spar operator BWG released their figures and called for government action to make others follow suit.
Grocery prices in the Republic are 5-15% higher than in Northern Ireland or Britain, but the committee said this was caused mainly by higher labour costs, insurance, transport and waste charges. It recommended the establishment of a business costs group aimed at reducing overheads, and also publication of a quarterly price survey by the director of consumer affairs, to help shoppers find best value.
The committee called for the retention of the controversial groceries order, banning below-cost selling, arguing consumers are better served by having more shops competing.
That recommendation was welcomed by RGDATA, the grocers’ body, as was the committee’s defence of the cap on the size of outlets. RGDATA said encouraging superstores “could see town centres becoming wildernesses”.
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