Name and shame threat for ‘profiteering’ supermarkets in suite of Government measures to tackle high prices

Supermarkets that price-gouge could be named and shamed under plans being examined by the Government.

Enterprise Minister Simon Coveney is developing a suite of measures aimed at ensuring major retailers are not profiteering from customers by keeping food prices high despite inflation slowing down.

He is examining whether to introduce new reporting mechanisms for companies that would require them to detail margins they are making on certain products.

Mr Coveney is also considering plans to force retailers to reveal specific profits they make from Irish consumers, even if businesses are based in other countries.

“It’s about more transparency around who’s making what margin and ensuring that the customers are getting a fair deal here,” he told the Irish Independent.

“We’ve seen significant disruption because of the war in Ukraine because of dramatic increases in energy costs. We need to make sure supermarkets aren’t taking advantage of that and delaying reducing food prices as fuel prices and gas prices and fertiliser prices come down,” he added.

Mr Coveney said the “game is up” for retailers refusing to pass on savings as inflation receded and said he was seeking advice from the Consumer and Competition Protection Commission (CCPC) on how to tackle profiteering firms.

However, the CCPC warned Mr Coveney against imposing price caps on supermarkets, insisting there was “no evidence of an emergency or market failure in the retail grocery sector”. But Mr Coveney is now examining how other countries are addressing similar situations.

The Fine Gael deputy leader’s intervention came after junior minister for retail business Neale Richmond failed to secure commitments from retailers on reducing prices.

Speaking on RTÉ’s Six One News after his much-publicised meeting of the Retail Forum, Mr Richmond was forced to admit he had not secured any real concessions from supermarket chains and said he would not be forcing them to reduce their food prices.

The Fine Gael TD said he asked supermarkets to reduce record level food prices by their next meeting in June, but said he did not have a stick to force them to cut costs for customers.

Labour’s spokesperson on finance Ged Nash accused Mr Richmond of being “all mouth and no trousers” in the wake of the meeting.

“The Government seems more concerned with appearing to do something about this issue rather than actually acting on it and using the tools it now belatedly admits are in its armoury, to bring prices down at the supermarket checkout.”

Social Democrats leader Holly Cairns branded the CCPC “toothless” and said it should be asked to examine price controls as a possible power to curb supermarket “greedflation”.

She said Mr Richmond would be “wagging his finger” at the supermarket representatives in the meeting of the Retail Forum but had no powers if his calls were ignored.

Industry lobby group Retail Ireland said supermarkets had held off increasing prices for as long as possible last year but “could not absorb the massive cost increases indefinitely”. “We expect general inflation and food inflation to ease as we move through the year,” the representative body added without making any commitments.

It comes as a price war on essential products continued between some of the major supermarkets.

Aldi confirmed it would follow Tesco and cut the price of its own-brand bread in the latest salvo in what is becoming a price war over supermarket staples. It said the 10c reduction would come into effect from tomorrow.

The move followed Tesco Ireland’s announcement earlier yesterday in which it said it would reduce the retail price on its own-brand bread by 10c.

It comes after several supermarkets cut the price of milk and butter last week.​

Reporting: The Irish Independent