Some supermarkets are charging almost double the price for staple groceries in the Republic when compared to the same brands in Northern Ireland.

That’s according to a new survey in the Sunday Times, which showed the exact same products – sometimes from the same brand – were more expensive on the southern side of the border in certain shops.

Examples given include Hellman’s mayonnaise, which went for €6 in the Republic but €4 in the North, and Dolmios pasta sauce, which went from €2.99 to €3.50 upon crossing the border.

Consumer journalist and Newstalk’s Home Show host Sinead Ryan told Newstalk Breakfast that part of this is down to higher production costs in the Republic.

“VAT, for instance, we charge 23% on most goods, in the UK, it’s not higher than 20%,” she said.

“The minimum wage is the same in both jurisdictions, however, the average wage is hugely different.

“So, in the North, the average wage is £34,000, down here it’s €45,000 – so that means anybody above basic shop floor level is costing the supermarkets a lot more.”

Shoppers browse meatless and plant-based vegan processed food products at a supermarket in November 2023. Image: Robert K. Chin / Alamy

Sinead said many supermarkets are using what economists call “price elasticity”, as they know southern customers are willing to pay more than those in the North.

“When we were still in the punt and we had the punt and sterling differential, people would head up North to get their Christmas booze – that still pertains,” she said.

“It’s an absolutely huge difference and the Government here has decided, ‘Look, we want to tax alcohol very highly’ and for those living in the border counties, when it comes to, maybe not the bread and the milk, but certainly when it comes to special occasions, people will head up the North.”

Price matching

According to Sinead, supermarkets price matching systems limit themselves to matching other outlets within the country – rather than matching their own cross-border costs.

“Sometimes in the supermarkets that work in both jurisdictions that sell clothing, very often, the labels will say, you know, a pair of leggings is £10 but €15,” she said.

“Now, that there is no relation to the exchange rate, which is about 12, 15% at the moment.”

Sinead said, “it’s as clear as day that we are being completely ripped off”.

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Main image: A shopping basket in a supermarket, © PA Wire/PA Images