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.