A spokesman for Quinnsworth/Tesco has defended the chain's sale of cut-price CDs and tapes on the grounds that customers wanted the best value it could offer. However, an independent music retailer, who did not want to be named, said the practice could drive independent retailers out of business, cost hundreds of jobs and eventually reduce the choice available to consumers.
In a promotion this week, Quinnsworth/Tesco is selling popular CDs at 21 per cent less than the usual retail price, on the basis that the stores are paying the VAT. "The multiples are cherrypicking," said the independent retailer.
"They are not providing a full service. A reduction of 21 per cent brings the price below my cost. Our customers suddenly think we are ripping them off. I simply can't survive; I'm very worried about it. This is the first sign of Tesco hammering Irish retailers."
He and other retailers had bought in huge stocks for Christmas, a peak buying time for records. "If we don't sell them we will be stuck," he said. He added they would contact the Competition Authority to ascertain if Tesco was engaged in below-cost selling.
Mr Dermot Breen, a spokesman for Quinnsworth/Tesco, said the company had seen the cut-price record deals as an opportunity to provide good value. The offer was only for a week, and he said the group was confident of its legal position on it.