Tesco to charge Sterling prices on groceries in border stores

dougdub

Can't say too much now but I believe Tesco are about to re merchandise their stores to UK formats in border areas and sell ALL groceries at sterling prices.

I don't know how they are going to do it but it now makes sense why the built a massive store off Donore Rd Drogheda!

Apparently this is happening as early as Tuesday!

A report on rte.ie today seems to confirm my thoughts:

http://www.rte.ie/news/2009/0502/tesco.html

Sir Oxman

http://www.boards.ie/vbulletin/showthread.php?t=2055547548

Flagged on this thread for a while, sterling-euro parity was an obvious offshoot of their new strategy.

rh555

I believe it when I see it. A couple of months ago i went to a Tesco in London and couldn't believe how much cheaper things were there and London is certainly not a cheap place.

I guess we will see next week but often Tesco just does their marketing trick where they reduce a price for a couple of days and then put it right back to the old price or make it even more expensive.

We'll see

Black Lead

I guess that we will now see the even further south heading to the border

Oracle

Yeah the price differences between M&S London and here are crazy as well. The only thing they charge near the same on is the Dine in for 2 Offer at €12.50/£10.

P.S. Just read the RTE article, if they are serious and consistent this is going to be a huge success for Tesco. Obviously the intention is to eventually roll this out nationwide. They're losing massive market share, to the discounters Lidl and Aldi, methinks.

rh555

[QUOTE=
P.S. Just read the RTE article, if they are serious and consistent this is going to be a huge success for Tesco. Obviously the intention is to eventually roll this out nationwide. They're losing massive market share, to the discounters Lidl and Aldi, methinks. [/QUOTE]

As they should. Their pricing may work great under the Celtic Tiger where ppl dont care all that much about prices but unfortunately Ireland is more like the Celtic Kitten right now

greendom

rh555 wrote: »

As they should. Their pricing may work great under the Celtic Tiger where ppl dont care all that much about prices but unfortunately Ireland is more like the Celtic Kitten right now

More like the Celtic corpse methinks

Adamcp898

Maybe this explains while Tesco Letterkenny is closing tomorrow and Monday for refurbishing??

Basq

The Sligo Tesco is closed tomorrow and Monday and re-opening 10am on Tuesday morning.

It's definitely feasible given that €10 Dunnes voucher offer I posted last week was only applied to border stores.

Juwwi

dougdub wrote: »

I don't know how they are going to do it but it now makes sense why the built a massive store off Donore Rd Drogheda!

is the tesco on the donore road closed tommorow does any1 know?

Serena08

I will believe this when it actually happens;)sure would be great it it was true :rolleyes:

Oracle

I wonder if this move is about more than just holding off the discounters, and catching the Irish shopper going North. For example, in the event that Asda buy Dunnes, then there'd be 150 Irish Asda stores with Asda type prices.

denat

Good news for consumers.

Aldi's prices have been creeping up to just barely undercut Tesco in the Republic. This may encourage Aldi to bring their Irish prices more in line with their British stores.

1huge1

I thought they would have to charge the same price at all their stores in the republic no? isnt that a law or something?

rh555

Yeah Tesco Sligo rearranged their whole store a few days ago. They kinda switched everything around. I just figured it would be more efficient for them somehow but maybe there is really something to the story. Well I certainly hope so although I just can not imagine they will charge the same prices as in the Uk but then again any permanent price cut would be great.

Syferus

The Aertel (still rocking out!) page on this is a little clearer, saying Tesco will source more of it's products from the UK in these border stores and Irish products will have a diminished presence.

No mention of the Sterling/Euro parity so that may be a red herring.

gonker

Heard that today that they are getting rid of loads of the irish products and getting cheapo uk products instead.:mad:

bk

You know, the one reason I still stop at Tesco's on the way back from Asda's is to get some branded stuff I really like that Asda don't stock.

For instance, I really like my club orange (and seemingly I'm not the only one, Asda do carry it, it just seems to be always completely sold out), but on the other hand I couldn't care less what brand of bleach I'm pouring down the toilet.

Hopefully Tesco will continue to carry the Irish products, but also stock cheaper UK stuff. That would make it a much easier one stop shop for people, because I think there are many people like me who still want some Irish branded products.

god's toy

It's a 'test' IIRR they want to see how joe bloggs responds.

All they need now is people saying 'hey what about us down south?!' and per store priceing!...

lol

brightkane

god's toy wrote: »

It's a 'test' IIRR they want to see how joe bloggs responds.

it wont be joe bloggs, it will be joe duffy that gives it a thumbs up or down!

IIMII

Many familiar Irish brands set to disappear from Tesco
Irish Times, Sat, May 02, 2009
by CONOR POPE

DOZENS OF grocery brands which are popular in the Republic will start disappearing from the shelves of Tesco stores from Tuesday as the retail giant launches a major restructuring of its stock.
Industry sources say many familiar brands will be removed from stores close to the Border and in at least one new store in Cork from next week as Tesco seeks to more closely mirror the product offerings and prices available in its British stores.
Up to 13 stores in Border counties as well as a large Tesco Extra outlet in Cork will initially be affected by the change aimed at combating the continued migration of shoppers from the Republic across the Border in search of better value.
Consumers in the Republic are considered more brand conscious than shoppers in other jurisdictions, but the economic downturn, coupled with a weakened sterling, has seen British chains such as Sainsburys and Asda operating in Border towns profit from a dramatic increase in cross-Border business.
When they travel North, consumers from south of the Border are willing to buy cheaper but less familiar products and Tesco is understood to be keen to stress-test this shifting brand loyalty.
Some established Irish brands will retain a presence on the shelves but many will see their prominence significantly downgraded as the retailer moves to wean shoppers off certain products. While the move will initially affect only a small number of stores, Tesco is understood to be keen to implement the changes across the State.
Camile O’Flanagan of Barry’s Tea confirmed that the range and amount of its products stocked by Tesco Ireland’s northeastern shops as well as one Tesco outlet in Cork will fall. She said some of its familiar brands would have significantly smaller displays while others would be dropped altogether. “We are a major player in the Irish tea market and it would be a concern for us if people could not get our products.”
In the affected branches, Tesco has adopted UK planograms – the layout plans illustrating how and where products should be displayed – so the stores will now replicate the layout and design of stores in Britain.
Tesco declined to comment but a source familiar with the retail giant’s operation confirmed it would be making “a significant announcement” on Tuesday.
He insisted it would be more focused on lower prices than range and denied it would negatively impact on products sourced from the Republic.
© 2009 The Irish Times

ftfrgrlnxtdr

hi, does anyone know about the speculation that as of tomorrow 10am tesco are going to be doing £ for euro groceries in 11 border stores? details are being kept top secret but i know the cavan, bailieborough and i think the new drogheda store?
i don't think its going to be actual £ for euro but the euro equivalent of the sterling value as of exchange rate last week. i am not certain though, only trying to guess from bits and pieces i have heard from people in the industry, would love to find out if anyone knows anything else?
it would be great for us if it were / is true, tomorrow 10am will tell all i guess......

RATM

There was an article on the front page of Saturdays Irish Times about them stocking less Irish products in future and it did mention something about STG although I only glanced by it. Article might still be on their website though.

Tipsy Mac

Non Vatable items like groceries they may be able to offer us Irish the same lower margin they make in their UK stores but alcohol will still remain far cheaper in the North and will continue to draw people there.

CH3OH

removed as thread kindly merged

DJ Hafez

Was in the new Tesco Douglas yesterday and saw signs that Euro = Sterling. I asked one staff member about it because i wasn't sure if it was a direct conversion or you paid the actual sterling price in euro and he said he didn't actually know.

Anyone know if its the exchange rate thats taken into consideration or is it that if it says £5 its €5.

Thanks

Basq

Threads merged!!

CH3OH

DJ Hafez wrote: »

Anyone know if its the exchange rate thats taken into consideration or is it that if it says £5 its €5.

Thanks

As far as I know, these signs relate specifically to clothing (and possibly footwear). If it is marked £5 you pay €5.

wmpdd3

Those red and white signs do refer to clothing and foot wear jewelery etc. only at the moment.

steve 0

Confirmed this morning
http://breakingnews.ie/ireland/tesco-cuts-prices-by-20-in-border-outlets-409477.html

bcirl03

Even if they are selling the goods cheaper I'll still be going up north.

They have been ripping us off for years, why go now just because they are suffering.

The 3 Tesco stores near me are always filthy, stock out of date, rotting, staff unhelpful.

Thanks, but no thanks Tesco.

Tech3

bcirl03 wrote: »

Even if they are selling the goods cheaper I'll still be going up north.

They have been ripping us off for years, why go now just because they are suffering.

The 3 Tesco stores near me are always filthy, stock out of date, rotting, staff unhelpful.

Thanks, but no thanks Tesco.

True but it wont be the case. For example in Sligo I can see shoppers now buying in Tesco again as travelling that awful road to Enniskillen wont be needed. If the prices drop by 20% it will be more in line with the North but with 15% VAT rate.

Its all about convenience and if prices are similar I can see people buying their shopping back in the republic again.

Still cheaper up north, and I'll continue to shop there.

Here's some of the new prices as of from today:

Tesco South - Caburys Twirl 5 pk - €2.00
Tesco North - Caburys Twirl 5 pk - £1.00 (€1.13)

Tesco South - Tesco Garden Peas 1kg - €1.79
Tesco North - Tesco Garden Peas 1kg - £1.50 (€1.69)

Tesco South - Nestle Cheerios 600g - €3.45
Tesco North - Nestle Cheerios 600g - £2.78 (€3.14)

Tesco South - Milupa Aptamil Follow on Milk 900g - €9.65
Tesco North - Milupa Aptamil Follow on Milk 900g - £7.90 (€8.92)

Tesco South - Lynx Africa Bodyspray 150ml - €2.85
Tesco North - Lynx Africa Bodyspray 150ml - £2.28 (€2.57)

Tesco South - Elvive Colour Protect Shampoo 400ml - €3.99
Tesco North - Elvive Colour Protect Shampoo 400ml - £3.16 (€3.56)

Tesco South - Gillette Venus 4 Blades - €6.89
Tesco North - Gillette Venus 4 Blades - £5.80 (€6.54)

Tesco South - Plenty White Kitchen Towel 2 roll - €1.99
Tesco North - Plenty White Kitchen Towel 2 roll - £1.00 (€1.13)

Phester

Ya: The Irish goods issue seems to me to be a smoke screen.

The truth is on some goods they are up to 100% dearer than in the UK. Even allowing for tax difference, transport and labor costs I don't think it would cost that on a packet of biscuits. made in England.


I wonder if there is any Irish product that we count find significantly cheaper in the UK and we could stuff the whole story up their B*M.

K-9

hellboy99 wrote: »

Still cheaper up north, and I'll continue to shop there.

Here's some of the new prices as of from today:

Most of them prices are competitive. Great news and it will put pressure on the competition and Irish manufacturers to match them. Great stuff.

schween

Phester wrote: »

The truth is on some goods they are up to 100% dearer than in the UK. Even allowing for tax difference, transport and labor costs I don't think it would cost that on a packet of biscuits. made in England.

I saw a Tesco Finest Vegetable Tart the other day... a sticker for £2.09 was on the side of it yet it was €6.50 or thereabouts. Absolutely outrageous markup. This is a Tesco own brand product, why is this so dear?

gonker

It was like christmas eve this evening in Tesco Extra in Drogheda:eek:. Cereal we normally buy at 4.04 is down to 3.50odd and jar sauces a good 50c off just had a quick look though.

Oracle

I was listening to the item on Tesco on Pat Kenny this morning. I got the impression Tesco plan on applying this format to all their stores in the Republic.

68 lost souls

Well since they are now sourcing everything in the UK rather then Ireland now it makes sense that this is what they were doing, anyone could have figured that out. Still boycot them, use superquinn instead.

Blisterman

Tesco own brand freshly squeezed orange juice is £1.40 a litre in my nearest tesco in Central London.

I was in Tesco in Dublin last week and it was €3.70 or so.

No wonder people shop in the North. That's over twice as expensive.

Oracle

Agreed Blisterman, the difference in prices is huge, plus we get very few of the special offers that Tesco give in the UK.

shilly-shally

Well it’s a step in the right direction.
even though, think I'll still be making my trips to Asda

Dellas

As above , a step in the right direction but Im still going to shop at Sainsburys and ASDA. I have got used to it and its actually an enjoyable day out. Also going to B&Q tomorrow to buy an electric shower.

South : €365

North : £225

Even at the rate of 1.16 to buy STG its over €100 in the difference.

JHMEG

Is that southern price for B&Q? I thought they were better than that and had stopped using the 1.5x price multiplier that the likes of Argos still use, and were closer to 1.2x or so.

Famous45

Went to Tesco in Drogheda yesterday and was delighted to see some of the changes. Drink wasn't affected really at all, a euro off here or there but nothing that would cause me to buy.

But I think my days shopping in the north will be few and far between and I've been raving about shopping down there ever since I started months ago. The hair product I use which was €6.30+ here was €3.30+ in NI, now it's only €3.10 in Tesco, half the price it was, Andrex Quilts were €8.69 in NI they were €5.50+, now €6.30 in Tesco. Other hair products that my partner uses were 2-3 euro down in price and on a par with Sainsburys. Toothpaste, tablets and that actually cheaper than NI. Ceasar Salad used to be €3.25 comapared to £2 in Sainsburys now only €2 in Tesco. Peppers, grapes, pineapple all cheaper than Sainsbury's. I didn't price Lamb or other meat products, I think i'll continue to buy my Lamb in Newry in future as it's pretty delicious and the price is spot on.

After my trip to Tesco I went to Tesco's in Banbridge as I thought there was a £7 deal on the booze which I seen on tv, to my dismay it ended on the 4th May, anyway managed to pick up 40 bottles of Bud for €27 which wasn't too bad. Looked at the prices there compared to Drogheda and most things were only 10-20c cheaper and given the extra vat here it prob works out the same pretty much.

Overall, the difference on items is very little, for what I buy anyway, and considering we prob spend in access of €15 on petrol every week to go shopping in NI plus the few hours of travel, I think shopping in Tesco in Drogheda will even itself out from now onwards.

Thumbs up to Tesco!!

Famous45

The 3 Tesco stores near me are always filthy, stock out of date, rotting, staff unhelpful

Thankfully the Drogheda branch is spanking new, for now anyway and actually enjoyable to shop in but on previous occasions they have failed to restock the shelves especially in the early evening time, I hope they don't continue this with the shoppers now back on their side. I agree with the stock out of date, last time I was there I was shocked to see so much stuff out of date.

The Tesco that I was in at Banbridge yesterday was a state, it's was filthy, the wheels were even falling off all the trolleys. Sainsburys in Newry isn't much better, the place looks like a war zone.

I actually enjoy shopping in Sainsburys in Lisburn, it's very pleasant and will continue to do so once a month, but the weekly pilgrimage across the border is out of the question now for me.

Gran Hermano

68 lost souls wrote: »

Well since they are now sourcing everything in the UK rather then Ireland now it makes sense that this is what they were doing, anyone could have figured that out. Still boycot them, use superquinn instead.

Superquinn have also switched to buying from wholesalers in N Ireland
http://archives.tcm.ie/businesspost/2009/01/25/story39050.asp

Supermarket chain Superquinn has begun buying goods from wholesalers in the North rather than the Republic in order to cut costs.

The retailer has sourced British-made products from the Belfast operation of Makro, a major European wholesaler. Sources said that the move enabled Superquinn to save up to 25 per cent compared with sourcing the same products in the Republic.

Can't say I've noticed Superquinn dropping their prices by 25%.

Gran Hermano

Gran Hermano wrote: »

Superquinn have also switched to buying from wholesalers in N Ireland.

They have been doing that for years.

Jip

Gran Hermano wrote: »

Superquinn have also switched to buying from wholesalers in N Ireland
http://archives.tcm.ie/businesspost/2009/01/25/story39050.asp



Can't say I've noticed Superquinn dropping their prices by 25%.

OMG !!!!!!!!!! Shame on Superquinn. I for one will be boycotting them from now on. Won't somebody please think of the suppliers. Now, which supermarked can I go to where all the food is produced Irish by manufacturers supplied only by Irish distributors.

bk

Jip wrote: »

OMG !!!!!!!!!! Shame on Superquinn. I for one will be boycotting them from now on. Won't somebody please think of the suppliers. Now, which supermarked can I go to where all the food is produced Irish by manufacturers supplied only by Irish distributors.

Why would you want to do that?

Surely the Irish distributors are just ripping you off, if the UK distributors are charging 25% less for the same products, sourced from the same suppliers in Ireland?

Fair enough if you want to say that you want to only buy Irish products, but the distributor should be irrelevant, it is just a warehouse and maybe a few trucks after all.

Did you not read the last line of the article, how can you justify this?

The Forfás research concluded that higher operating costs added approximately 5 to 6 per cent to the total cost base of retailers operating in Dublin compared to Belfast. However, there can be differences of up to 50 per cent in prices.

Here's a useful site to compare prices:

http://www.mysupermarket.co.uk/