In the space of a few days, the Irish grocery market has changed forever. Tesco’s move to cut prices in 11 border stores and reduce the shelf space for Irish products has prompted heated debate and heralded the beginning of a supermarket war. Lidl 
have slashed prices on a range of fresh and packaged goods, right across Ireland, with a spokesperson from the German discounter adding that they are constantly extending, not reducing, their range of Irish products. Dunnes Stores will now have to follow suit, with SuperValu and Superquinn also put under pressure to lower prices. Will the consumer be the winner?
Be under no illusion. Tesco’s decision – code-named Operation Scale – is part of a long-term plan to squeeze its smaller competitors. As welcome as the cuts and the price 
wars are for many struggling households – including that of this barely employed freelancer – Irish Times Consumer Affairs Correspondent Paul Cullen pointed out in Saturday’s Weekend Review that they could eventually lead to less competition, higher prices, and less choice:
The inevitable outcome will be the further decline of many smaller independent stores, but industry observers think bigger casualties are likely. And if that happens, consumers will be worse off than they were before.
Meanwhile, an internal company document, leaked to today’s Irish Times, reveals what we all suspected and what Conor Pope highlighted last week: Tesco were ripping us off for years. Tesco Ireland’s profit margin was 9.3% last year and is projected to rise to 9.5 per cent this year. This compares 
with a margin of under 6% in its parent company. The leaked report also reveals that Tesco was 0.5% dearer than Dunnes Stores before the latest round of price-cuts. Meanwhile, Tesco’s move has put already struggling Irish retailers under enormous pressure.
So what, some of you may shrug. We know Tesco are a massive corporate giant, and that they’re lowering prices to increase their profits, not out of benelovance and love for humanity. Their past sins are irrelevant. Our commentor Seph argues that the bottom line for many struggling households is that their weekly shop has become that bit more affordable:
A huge number of people in Ireland have lost their jobs recently and our household spending budget has been severely reduced and so we do not have the luxury of being able to worry about the deal the farmers are getting as we are too busy trying to feed and cloth our children on what little money we do have. Tesco’s reductions in price are very welcome in our household where making the next payment on the mortgage is a severe stress.
What about you? Are you concerned about jobs in Ireland and the possibility that smaller businesses will be squeezed out, with competition actually reduced in the long-term? Or are such thoughts a luxury for your household, especially if your budget is tight and your focus is on putting food on the table this week?