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Retailers benefit as Groceries Order cut
John Mulligan



THE GROCERIES ORDER will be consigned to history tomorrow when the government removes the controversial legislation from the statute books after 18 years.

It has been blamed for keeping prices artificially high and its removal will allow major retailers to negotiate tougher deals with suppliers.

Retailers will now be able to sell goods at below cost price, while new legislation introduced under the Competition (Amendment) Act will also prevent suppliers from dictating the lowest prices at which their goods can be sold. Its other provisions outlaw unfair discrimination and the payment of advertising allowances. Offinvoice discounting will also be banned, ending a practice which saw suppliers provide retailers with discounts not shown on the invoice.

Some retail experts expect an initial wave of price-cutting and predict trouble for Ireland's agricultural sector, as multiples shift budgets towards known brands.

Other industry suppliers expect the impact to be minimal, suggesting the Irish retail market has become extremely competitive as multiples such as Tesco and Dunnes ramp up expansion.

The government caved into pressure to scrap the Order after a period of consumer discontent led by Eddie Hobb's Rip-off Republic.




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