Tesco brings price parity between two countries

21 Mar '09

1 min read

Tesco, the UK based retailer has turned the retail industry topsy turvey. In an industry first in Ireland, the foods and apparel retailer has brought price parity in apparel prices between the Republic of Ireland and North Ireland by introducing euro-sterling price parity in its stores across the country.

What does this mean for a clothing apparel shopper in Ireland? At current exchange rates, shoppers in Republic Ireland will pay 7 percent less than their counter parts in Northern Ireland, where a difference of 30 percent exists due to exchange rates and other taxes.

Since long, prices prevailing in the Republic of Ireland have tended to be on the higher side, than those existing in Northern Ireland due to several reasons including those mentioned above, which has always infuriated the shopper in Ireland.

But in a stroke, worthy of a genius, the retailer has changed the rules of the trade and compelled other traders to follow the new rules to compete in the markets. Though apparel sales account for only 5 percent of overall sales, Tesco implemented this policy to gain additional market share.

Fibre2fashion News Desk - India

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