Irish News of the World
Sunday April 5th, 2009
Why are Tesco really dropping the price of clothes?
In mid-March there was much hoo-haa over the Tesco decision to charge the hard pressed Irish consumers the same amount in euro as in sterling for all clothes sold in Ireland. An item costing £12 would now cost us €12 instead of the outrageously high original price of €18.
We were told how brilliant Tesco were to be effectively giving us a price cut of up to 30%.
But were Tesco really being that generous? They’re a business after all with the main aim of making money. It was interesting to note that they weren’t making the same cuts on anything else – we’d still be overcharged on groceries and electronics for example.
An eagle-eyed ValueIreland.com reader spotted what was actually going on. Tesco in the United Kingdom had already reduced their prices on their clothing range back in January.
Tesco UK had to cut their prices on over 700 clothing items because of a price-war that was hotting up between themselves and ASDA.
So, in cutting their prices here in Ireland, Tesco weren’t really doing anything as special as they made out for Irish consumers.
Unfortunately it was all just spin. Their price differences between Ireland and the UK were actually higher than the normal 30-50% for the months of January, February and March so when the price drop came in here in March, they were only restoring the differences back to the normal 30-50% price differences.