NCA reports stronger competition in the own brand sector
The latest price survey from the NCA reports increased competition but a further narrowing of the price gap between multiples in Ireland
10 October 2008
Tesco, Dunnes and Superquinn are starting to narrow the price gap on discounters for own-brand goods, according to the latest price survey by the National Consumer Agency.
Comparing the multiple chains and the discounters Aldi and Lidl, the agency reported a significant drop in the price differential between the cheapest and dearest outlets, compared with its December 2007 survey. Lidl was once again the cheapest, at €39.68 for a basket of 34 goods, while Dunnes Stores’ basket of the same 34 goods came to €53.14, a gap of just over €13.
The survey revealed that price decreases have taken place across each of the major chains, Tesco recording the largest price decrease, with a drop of 4.48% from June to August 2008.
Despite these developments however, the NCA remains critical of the supermarkets. Chief executive Ann Fitzgerald commented that “consumers need more competition in the branded sector,” adding: “The price gap between the multiples on a basket of 72 branded goods is tightening, with only 0.3% difference between Tesco, Dunnes and Superquinn in August compared to 1.02% in December 2007.”