In the long term, I reckon Tesco are shooting themselves in the foot.
When it comes to competition from Aldi and Lidl yes but in my opinion Dunnes Stores is desperate.
A walk around Dunnes is a headache inducing line of stickers proclaiming ''low price'' and ''half price'' when you'd see that product selling for ''half price'' for what seems like 12 months of the year.
A special offer for Cadburys chocolate at 2 Euro per bar was beaten at Tescos where their offer worked out at 1.75 Euro per bar. Then as soon as the offer was over the price was bumped up to something like 2.69 Euro and a sticker proclaiming ''low price'' which just doesnt make any sense.
Therefore there is even less trust there in the real value of an offer for me. Even their discounts on ''almost expired''' goods are ridiculous and often don't beat the price of their deal on 2 ''fresh'' items.
As I see it, Dunnes only has it's long established pre-celtic tiger embedded locations as anchor tenants in it's favor which acts to keep competition out and draw in lazy customers or pensioners stuck in their shopping habits.
For example it owns or controls almost all of Georges Street in Dublin. If the right site on Georges Street was available you'd see an Aldi or Lidl spring up there very quickly. As a national brand I think they could be doing better than this. There is little competition in the whole sector apart from Aldi and Lidl.
We need something or someone else to shake up the market.