30/06/2008

Food Price Initiative, 'Wrong Way': MLA

Local outlets of national food chains have started a price-cutting initiative that may see shoppers benefiting from a full scale supermarket price war - although one politician has urged a different approach - which he said could be of more use to hard-pressed NI families.

On Friday Asda announced it was slashing the cost of its top 10 selling foods, which it says could crush the cost of an average grocery basket by around half.

Rivals Tesco and Sainsbury's also revealed their own promotions in response to the current economic climate.

Average grocery bills have rocketed by a fifth since this time last year, which has been exacerbated by the impact of the US 'credit crunch' and spiralling interest rates and higher nergy costs.

Asda's move was to cut prices on staple goods including bread, butter, eggs, fruit and vegetables, which they put on sale for 50p.

The chain claimed the offer will slash the cost of a basket of core groceries from £10.83 to £5.00 on average - a saving of more than 50%.

However, East Belfast MLA, Robin Newton said that while he welcomed the recognition by the major supermarkets of the present cost of living problems facing many on lower or fixed incomes, this wasn't the right approach.

"In response to their announcements on slashing food costs there will be no benefit to families if this is a programme of 'fancy marketing' that requires the purchase of more than they could do with, thereby add to the debt problem; it needs to be real bargains on individual items," he said.

Speaking on BBC Radio Ulster, Mr Newton continued: "My constituency contains areas of deprivation were families are struggling to make ends meet.

"Many will be cynical about these supermarket announcements as the retailing giants are perceived as maximum profit led rather than having a strong social conscience.

"If the shopper is required to purchase three items for the price of two or some such clever marketing strategy then more families will end up with increased debt or be unable to take advantage of the offers," he claimed, noting that for many the major problem is weekly/monthly cash flow and buying more than the cash-strapped family needs against a strict budget will often increase the problem.

"If the supermarkets genuinely want to help in these current difficult circumstances then let them slash the costs of individual items.

"Employing smart tactics including skilful promotions and selling skills will benefit only the already hugely profitable supermarkets and leaving hard-pressed families still struggling," he concluded.

(BMcC)

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