LIDL to cut prices, price war imminent.

ronbyrne2005

http://www.irishtimes.com/newspaper/ireland/2009/0509/1224246189736.html

Good to see market forces finally begining to work.

edit:more analysis
http://www.irishtimes.com/newspaper/weekend/2009/0509/1224246181601.html

dowtchaboy

Oracle wrote: »

Yes Lidl had a full page colour ad in the newspapers yesterday.

Although I welcome Lidl's price reductions, even these price cuts don't represent one country, one price. For example, here's Lidl's current special offers at Lidl in Northern Ireland. I haven't checked every item but the prices look far cheaper than here: http://www.lidl.ie/ie/home_ni.nsf/pages/c.o.weekly_food_offer.index

Ah well now - this is straying into political nicities - I take what LIDL mean by "one country" is that they are not separating the Republic of Ireland into "Border counties" and "The Rest". I don't think they are trying to re-unite the Free State with The Fourth Green Field!

mike65

/\ Exactly so /\

Good to see.

Pity that sniffy article by Paul Cullen didn't spend a little time considering why Irish suppliers are supposedly on the ropes instead of having a go at Tesco for addressing the pressing matter of prices.

Oracle

My point is if Lidl really wanted to apply a "One Country- One Price" policy there should be about a 10% difference in the prices charged in the Republic and Northern Ireland. (i.e. the currency exchange difference between sterling and euro) The price differences are far more than 10%.

professore

Constitutionally Northern Ireland is part of another country since the Good Friday Agreement referendum. So they are correct (as distinct for Tesco with lower prices in the border counties).

Oracle

Disappointing response, post deleted.

scout353

An interesting approach from Lidl though they too seem to operate a different price structure for their stores.

I have seen them charge 20c more for one product (their salad mix) in Tramore than they do in Waterford which is just 10k away!

There may be more but this was one I noticed as I had purchased it in Tramore and happened to be in the Waterford the following day!

EoinHeffernan

Oracle wrote: »

My point is if Lidl really wanted to apply a "One Country- One Price" policy there should be about a 10% difference in the prices charged in the Republic and Northern Ireland. (i.e. the currency exchange difference between sterling and euro) The price differences are far more than 10%.

But you still have to factor in the higher wage costs, tax etc. etc. etc.

snubbleste

Lidl are always matching their competitors' prices and at times undercutting them, what's so different about this time?
Food prices are due for a fall anyway as a result of deflationary pressures

This should be in the consumer issues forum

The Fool

Notice Lidl had a front page add in Irish Times today and full page add on page 4 and 5.

I'm sure article is just a coincidence to this :rolleyes:

TM

EoinHeffernan wrote: »

But you still have to factor in the higher wage costs, tax etc. etc. etc.

And when you say tax - specifically VAT.

Cork

And when you say tax - specifically VAT.


There is no VAT on food.

Supermarket margains are big.

Farmers only get a fraction of the cost of producing milk.

Yet shops and distributors get the vast majority of the price.

TM

VAT IS chargeable on some food items.

http://www.revenue.ie/en/tax/vat/leaflets/food-and-drink.html

1.2 Most food and drink sold by retail shops is chargeable to VAT at the zero-rate. This includes most basic foodstuffs, for example, bread, butter, tea, sugar, meat, milk, vegetables etc.. Certain items of food and drink are specifically excluded from the scope of the zero-rate. These are taxable at the rates of 13.5% or 21.5%. Food liable at the 13.5% rate includes flour or egg based bakery products e.g. cakes, crackers, certain wafers and biscuits. Food and drink liable at the 21.5% rate includes sweets, chocolates, confectionery, crisps, ice-cream and soft drinks.

In addition food and drink liable at the 21.5 % rate includes:-

* frozen desserts, frozen yogurts and similar frozen products, and prepared mixes and powders for making any such product or similar products;
* uncooked confectionery;
* savoury snack products made from cereal or grain, fried bread segments, pork scratchings, and similar products and
* soft drinks and alcohol.

TM

Cork wrote: »

Farmers only get a fraction of the cost of producing milk.

You mean they operate at a loss?

dotsman

TM wrote: »

You mean they operate at a loss?

Why do you think there are so many EU subsidies for farmers? If farmers where to charge enough to make an independent living, you'd be paying €5 for your litre of milk!

TM

dotsman wrote: »

Why do you think there are so many EU subsidies for farmers? If farmers where to charge enough to make an independent living, you'd be paying €5 for your litre of milk!

If farmers are (constantly?) making a loss as suggested by Cork then why do they bother? I Presume that Cork is simply wrong in saying "Farmers only get a fraction of the cost of producing milk". Maybe they get only a fraction from buyers but the rest from EU grants or something?

dotsman

TM wrote: »

If farmers are (constantly?) making a loss as suggested by Cork then why do they bother? I Presume that Cork is simply wrong in saying "Farmers only get a fraction of the cost of producing milk". Maybe they get only a fraction from buyers but the rest from EU grants or something?

Well, you both right. As Cork said, they only get a fraction of the cost from the supermarkets, and the rest is covered by the EU. It's different for different farmers (and I'm not an expert on the subject), but that's the gist of it.

Highsider

Still will do my shopping up North until they get real with their prices.

query08

My big concern with all these price drops is that they are not supporting irish suppliers, so many of them going out of business now as they are no longer supplying to Tesco. its a huge loss of earning for the irish economy, and will eventually cause the closure of other retailers in ireland who are commited to buying irish. May be benefical in the short term, but in the long term will ruin the irish retail industry!

jimmycrackcorm

query08 wrote: »

My big concern with all these price drops is that they are not supporting irish suppliers, so many of them going out of business now as they are no longer supplying to Tesco. its a huge loss of earning for the irish economy, and will eventually cause the closure of other retailers in ireland who are commited to buying irish. May be benefical in the short term, but in the long term will ruin the irish retail industry!

You are posting that in the wrong thread - it should be in the thread about people shopping up north - see how much sympathy you get there.

query08

Afraid its not in the wrong thread, Tesco ireland are no longer using irish suppliers, and lidl aldi also dont use many irish suppliers, so the effect of shopping in either of these stores is as bad as shopping up north!:)

Nabber

I hate when people get upon the fact that they no longer use Irish suppliers. Every thing is being outsourced. So why would food not get the same treatment?


I'd be surprised if anyone here is typing away on Irish or European made keyboard.

Lidl, Adli & tesco can only drop their prices for 2 main factors in mind.

1. Someone loses his/her job (directly or indirectly)
2. Less profit on the items sold.

Me thinks it will be number 2

query08

Lidl, Adli & tesco can only drop their prices for 2 main factors in mind.

1. Someone loses his/her job (directly or indirectly)
2. Less profit on the items sold.

Me thinks it will be number 2[/quote]


Me disagrees! Tesco made 2b in profits last year!! how many irish retailers made even a fraction of that profit!!

denat

Nabber wrote: »

Lidl, Adli & tesco can only drop their prices for 2 main factors in mind.

1. Someone loses his/her job (directly or indirectly)
2. Less profit on the items sold.

Me thinks it will be number 2

Could someone translate the above to internationally understandable English language, please?

BoB_BoT

Nabber wrote: »

I hate when people get upon the fact that they no longer use Irish suppliers. Every thing is being outsourced. So why would food not get the same treatment?


I'd be surprised if anyone here is typing away on Irish or European made keyboard.

Lidl, Adli & tesco can only drop their prices for 2 main factors in mind.

1. Someone loses his/her job (directly or indirectly)
2. Less profit on the items sold.

Me thinks it will be number 2

and after everything is outsourced we can all sit back and relax as only public service jobs will exist but there'll be no money to pay them with. Horray.

byte

query08 wrote: »

Afraid its not in the wrong thread, Tesco ireland are no longer using irish suppliers, and lidl aldi also dont use many irish suppliers, so the effect of shopping in either of these stores is as bad as shopping up north!:)

Are you sure? How I read it (WRT Tesco), is that Irish suppliers are stil there, but in a smaller capacity (ie. less shelf space).

yankinlk

Nabber wrote: »

Me thinks it will be number 2

denat wrote: »

Could someone translate the above to internationally understandable English language, please?

Nabber is goin for a poo.

K-9

query08 wrote: »

Tesco ireland are no longer using irish suppliers

Do you have a source for this?

RATM

dotsman wrote: »

Why do you think there are so many EU subsidies for farmers? If farmers where to charge enough to make an independent living, you'd be paying €5 for your litre of milk!

Never seen a farmer on the dole Q:rolleyes: At least not legally.

GerardKeating

query08 wrote: »

Me disagrees! Tesco made 2b in profits last year!! how many irish retailers made even a fraction of that profit!!

But how much of that was in Ireland and how much was in the UK.....

IIMII

Does anyone know what items in Lidl are Irish produced (incl north) and which aren't?

Say milk, bread, cheese, veg etc?

mike65

Lidl milk and bread is Northern ireland sourced. The cheese I have is made in Staffordshire.

IIMII

I'm not going to go near Tesco in future, but at the same time I'd like an alternative to Dunne's and Super-valu (Dunne's is a bit awkward for me to get to and Super-valu are rip off merchants).

I wouldn't mind shopping (and already do some there from time to time anyway) but I'd also like to buy Irish where possible and encourage them to stock Irish produce.

Pity they don't carry a Guaranteed Irish label of some sort on their Irish stock. For example, I bought some of their 'Irish Soda' bread last time I was in there but have no idea if it is really Irish at all

bk

IIMII wrote: »

I'm not going to go near Tesco in future, but at the same time I'd like an alternative to Dunne's and Super-valu (Dunne's is a bit awkward for me to get to and Super-valu are rip off merchants).

Superquinn? They have an excellent delivery service.

IIMII

bk wrote: »

Superquinn? They have an excellent delivery service.

Nearest one is about 25 miles away unfortunately - haven't been in one in years

dowtchaboy

A good way to determine country of origin is to look at the small oval EU stamp showing the country of origin - UK, IE etc. - on the top, creamery or factory ID in the middle, and EU at the bottom. This can tell you, for instance, if chicken or pork is from Northern Ireland in which case you should avoid as it will be stuffed with antibiotics and last minute injected water which is allowed in UK!

Alas it is not foolproof - for instance a lot of Irish made cheese, eg by Glanbia (who I think make most of Mark & Spencer's cheese), is made here but is cut and packaged in UK and will show a "UK" label. Seems daft to buy "Waterford" brand cheese in Waterford which has gone across the water to be packaged and back again....

killybram

IIMII wrote: »

Does anyone know what items in Lidl are Irish produced (incl north) and which aren't?

Say milk, bread, cheese, veg etc?

Champion Real Butter is made in Monaghan.

workaccount

I think my concern is that Tesco will put everyone out of business and we will have a monopoly in the future.

Someone has said that it annoys them when they hear people say "but it's not sourced in Ireland" and that eveything is outsourced. I'd be interested in hearing you expand further on this. Do you not think that we should select the option available to us that supports the Irish suppliers etc. when we have it? Fair enough it might be a little more expensive (not by much I hope) but Tesco has no interest in Ireland other than to make profit.

If you ask me this is a great way for Dunnes to realign themselves in the marketplace and to have a a unique selling proposition. Both Dunnes and Tesco were like Fianna Fail and Fine Gail the last few years - a carbon copy of each other.

mike65

Well thats up to Dunnes, if they can carve a patriotic niche by selling comparitively expensive locally sourced foods then well and good for them.

unklerosco

workaccount wrote: »

If you ask me this is a great way for Dunnes to realign themselves in the marketplace and to have a a unique selling proposition. Both Dunnes and Tesco were like Fianna Fail and Fine Gail the last few years - a carbon copy of each other.

I was only saying that to my old man the other day... His head is melted trying to deal with Tescos. People have no idea how they treat the suppliers... They just bully them into slashing their prices, do it or else.. Thats the only choice. Now I know people are gonna say the prices are prob too high in the first place, you wouldn't be saying that if your job depended on it tho...

Dunnes have a great chance now to do something about this, I haven't shopped in Tescos for nearly a year now since my dad was telling me what they're at.. Its a discrace imho. N between Aldi n Lidl, I much prefare Aldi.. Just think their food is nicer n they do use a good few Irish suppliers...

IIMII

workaccount wrote: »

Do you not think that we should select the option available to us that supports the Irish suppliers etc

Don't think that was me but...

I think that Irish suppliers need some competition so that they don't profiteer - I wouldn't support Irish suppliers blindly. Irish producers on the other hand are exceptionally important in my view.

I have worked with Irish companies with English parent companys or headquarters in the past. I remember one accounts person on the phone from Britain giving out that Irish subsidiary couldn't use their income tax system as they wanted to move the payroll department to Britain! I have no doubts but that Tesco's would like to supply every store in Ireland directly from the UK if they could, and I don't like that.

But at the same time, I am under no illusions that Irish suppliers will inflate the economy at the first opportunity - if I can continue to buy as many Irish produced goods as possible at a reasonable price I am happy. If that is done via an Irish supplier even better

The only reason my attidude to Tescos differs is that they seem intent on freezing out Irish products as much as possible to apply a single format from the UK in Ireland. Ie because Tetleys tea is popular and cheap in Britain, then the Irish must drink it. If Barry's are cheap in Ireland, now they must also be cheaper than Tetleys in Britain (to compete with Tetleys in Britain, so that the can then be included in Tescos stores back in Ireland).

Anyway the point I'm making (probably badly) is that under the Tesco model, Irish products will first have to crack Tesco's UK market to get in Tesco Ireland stores in future, and I don't like that nor do I see that as being a supplier costs issue. It's a Tesco one model issue

Cork

unklerosco wrote: »

I was only saying that to my old man the other day... His head is melted trying to deal with Tescos. People have no idea how they treat the suppliers... They just bully them into slashing their prices, do it or else.. Thats the only choice. Now I know people are gonna say the prices are prob too high in the first place, you wouldn't be saying that if your job depended on it tho...

Dunnes have a great chance now to do something about this, I haven't shopped in Tescos for nearly a year now since my dad was telling me what they're at.. Its a discrace imho. N between Aldi n Lidl, I much prefare Aldi.. Just think their food is nicer n they do use a good few Irish suppliers...

Why is it acceptable that foriegn supermarket multiples import vegatbles and goods into this state at the expense of Irish jobs. People then crib about unemployment here.

Shopping at local buthers etc is far cheaper than large multiples. My da buys butter at a local co-op shop - again far cheaper than the multiples.

It is not acceptable that supplier margins are squeezed while these multiples make excessive Oirish profits.

jimmycrackcorm

Cork wrote: »

Why is it acceptable that foriegn supermarket multiples import vegatbles and goods into this state at the expense of Irish jobs. People then crib about unemployment here.

You may argue that point with the thousands of people going shopping up the north.

foggy_lad

it looks very good but all the prices are still very different!

IIMII

Hey, hey. I like it! The got the language right, let them sort the prices and get in more Irish suppliers and I'm all theirs

GerardKeating

IIMII wrote: »

Does anyone know what items in Lidl are Irish produced (incl north) and which aren't?

Say milk, bread, cheese, veg etc?

They have a sign up, saying that 40% of products are sourced from irish suppliers...

IIMII

GerardKeating wrote: »

They have a sign up, saying that 40% of products are sourced from irish suppliers...

Does it itemise them? Going to take a spin into one later this week or at the weekend

snubbleste

GerardKeating wrote: »

They have a sign up, saying that 40% of products are sourced from irish suppliers...

Aldi has a similar percentage with signage in their stores declaring it

Davy

Stuff thats reduced between 9% and 41% : http://www.lidl.ie/ie/home.nsf/pages/c.o.PR.Index

grahamo

It just goes to show the mark-ups they were charging. They can afford to cut prices from 9 to 41% and they are still making money on these items!!!!

snubbleste

"LIDL to cut prices, price war imminent "

Dunnes have today reduced the price of some basics, these are important as they attract customers:
1l milk from 79c to 78c
Bread from 60c to 55c