SuperValu and Centra hit back in price war

The owner of SuperValu in Ballyconnell and Ballinamore says he was the first to match and even smash the Sterling price barrier and has vowed to drive prices down further as the Border counties supermarket price war gets under way in earnest. Padraig Donohoe also owns Centra at Ernehill, Belturbet, and is on the front line when it comes to cross Border shopping. He says the aim is to do the best deal for customers. 'We work on a small margin and if we can buy goods cheaper, we can sell them cheaper and that"s good for the customer. We"ve done deals with all our local suppliers. They"re cutting their margins and we are cutting ours'. He says SuperValu reduced prices by 30% just after Christmas, making hundreds of items the same price as in the North and many even cheaper. This compares with Tesco, which reduced prices by 22% in 11 Border stores last week. Mr. Donohoe says that means they are still eight to ten% behind what SuperValu has been doing for months. 'We"ve the before and after prices displayed in all our stores and all our shoppers can see for themselves a clear 30% saving, not 22%, which our competitor is boasting about.' Mr. Donohoe and the group manager James Masterson claimed they had let the way at Easter when their three-pack of Easter eggs at €3.50 was the cheapest North or South. They employ 160 people and the wages are being spent locally. 'We don"t want to support communities in England. We want to support people here at home and our policy is to buy 100% Irish at all times,' said Mr. Donohoe. Currently 75% of all products in their stores are Irish and that will remain so at the best prices that can be found North or South. 'Regardless of other supermarket offers in this price war, we intend not only to match them, but beat them in many instances,' he says. 'You ain"t seen nothing yet in this price war - just watch what we will be offering for the Christmas shopping period,' he predicted. Mr. Donohoe asked how much sponsorship has ASDA put into communities in Belturbet, Ballyconnell or Ballinamore. 'They have six per cent of the Irish grocery market without having one building in the South. It"s time for people to take stock. Keep jobs here, get better prices and support Irish suppliers.' Mr. Masterson said SuperValu the first supermarket group in Ireland to counteract Sterling prices: 'We actually commenced a promotion that made everyday branded items 30% cheaper, and they included Weetabix, Ariel, Cow and Gate, nappies. That started in January and we were the first retailer to do it. It"s not a special offer but permanent prices. There are large notices in the stores which say Sterling match. 'What we are saying is the fact that there is an actual difference between North and South prices of 30% and that is the reduction we already have in place since January.' Mr. Masterson said SuperValu prices on branded items, which is significant. The promotion is known as Northern Price Match in Donohoe"s SuperValu in Ballyconnell and Ballinamore and in Centra at Ernehill, Belturbet. Mr. Masterson out that the Donohoe Group is local and employs a total of 160 people. 'We"re part of one of the biggest retail groups in Ireland, Musgraves, which has SuperValu and Centra in Ireland and a cash and carry network, North and South of the Border and Londis Budgeons UK,' he said. 'If you add in local distributors - who we always promote - our Irish content reaches 90% of all products on sale in the stores. We sat down with our suppliers and we have both taken a hit to reduce our margins, to ensure we have Irish products on the shelves. We are out there promoting local suppliers,' said Mr. Masterson. For example, sausages come from Arthur Mallons in Monaghan and the own-brand juices are from Pat Mulryan"s in Donegal. Mr. Donohoe said that where possible they source 100% Irish products, which equates to 75% of the total products in the SuperValu shops. 'We guarantee that all fresh meat, chickens and pork is 100% Irish and in any instances, local as well. This is unlike competitors, who are bringing in fresh produce from England or elsewhere.' 'We guarantee that we will match any price. We"re not going to outsource any product that is not 100% Irish.' Milk comes from Avonmore, Town of Monaghan and NCF, for example, and shelf space for those products will not be cut. Mr. Masterson added there are a lot of €1 and half price deals in Donohoe SuperValu and Centra. There is also the Nice Price promotion in the stores and Right Price in Centra, which equates to selling goods at 40% cheaper than any product North or South.