THE CHIEF executive of Superquinn, Simon Burke, has warned of substantial job losses in the retail sector after Christmas as a result of the financial downturn and the flow of shoppers crossing the Border.
Mr Burke said sales figures in the past week were the worst for more than a decade. The sector was expecting a bad Christmas season and a "worse" New Year.
"The business environment for retail is pretty appalling and getting worse, and this has to have a significant impact on jobs."
He would be "gobsmacked" if there were not significant job losses in the New Year.
The Irish-owned supermarket chain yesterday announced a "Cheaper than Newry" promotion this weekend for selected staple items, but admitted that "the reality is that if we begin to lose our regular customers to Northern retailers that will put serious pressure on our business going forward".
Mr Burke told The Irish Timesthe growth of cross-Border shopping was "very unhelpful" but insisted it amounted to "a trickle" relative to the overall size of the retail market.
"We have enough problems at the moment and on top of that there is now the issue of shopping north of the Border."
Surveys have shown that many grocery prices in the North are currently up to 40 per cent cheaper but Mr Burke insisted that the overall picture was "a mixed bag". Alcohol was cheaper in the North but fresh, local produce cost about the same in both jurisdictions.
"I don't have any problems with people being advised to shop around but I do have a problem with surveys that seem to indicate it's all one-way traffic, when it isn't." Southern consumers could still get good value by shopping "cleverly" and choosing promotional items.
Asked about reports that the company had been approached by rivals seeking to acquire its business, Mr Burke said these had "come to nothing".
"We're not talking to anyone about anything," he said.
Superquinn had been approached by a number of parties who had an interest in buying the company, he confirmed, but added: "This goes on all the time. It doesn't mean the company is going to be sold."
Meanwhile, Tesco Ireland has rejected claims by some suppliers and customers that it has increased prices across a range of products in the last two months.
A spokesman dismissed a report in the industry newsletter Retail Intelligencethat Tesco had increased the prices of "significant numbers" of branded products at a time when commodity prices were falling and suppliers were under pressure to reduce their prices. While some products had increased in price in other retailers, many were up in Tesco alone, it claimed.
"On one hand they are squeezing us for more price cuts, and saying that it is the suppliers' fault that prices in Ireland are too high, and then they turn around and put up the prices in their stores. It is unjustified," said one supplier quoted by Retail Intelligence.
Separately, a number of customers have also contacted The Irish Timeswith their concerns over price trends.
However, the Tesco spokesman said the company had reduced thousands of prices this year. While there were "fluctuations" the general trend was downwards.
Price wars
A NUMBER of readers have got in touch to say that prices have been increased in their local Tesco stores.
Darragh from Rathfarnham said "practically everything" had gone up, and he cited examples such as Dove shower gel, Gillette fusion razors, Sanex shower gel, Actimel yogurt drinks, McCain micro chips and Tesco orange juice.
Another reader gave the example of a side of smoked salmon which, she said, has gone up €3 since Christmas last year from €12.99 to €15.99.
Other staples which appear to have risen in price in the past six weeks include Flora margarine, Maxwell House coffee and Santa Rita wine.
However, a spokesman for Tesco Ireland said the company had reduced over 9,000 prices this year and was committed to "continuing with the lowest prices and to running the best promotions in Ireland".
He instanced price drops over the past few weeks for leading products such as Andrex toilet paper, potatoes, HB ice cream and Imperial Leather soap.
Of the products mentioned by our reader, he said the price of Sanex had fallen while there was no change in the price of Dove and Tesco orange juice. Conor Pope & Paul Cullen
