Over the weekend Tesco unveiled a new line of low cost goods aimed at taking on Aldi and Lidl.
As economic worries grow, Tesco launched its Cash Savers brand, which will come in black and amber packaging.
Tesco plans for the range to save Irish shoppers €100 million as it fight against consumers growing fondness of the German retailer giants.
Tesco, the country’s biggest grocery seller, which reported sales of €3 billion last year, will also refit its major stores so it can maximise its display of low cost products.
The Cash Savers range will be displayed in a specially designed colour coded section of each Tesco store.
The range will contain both branded and own brand products, as the retail giant has now began to bring its low cost products into the country for stockpile before distribution.
While it's understood Tesco's existing own-brand products will not be affected by the move the store is also set to cut the price of a further 3,000 grocery products, which is thought partly to be an attempt to ease consumer anger over the disparity between prices in the North and those in the Republic.
A further 2,000 prices will be cut over the coming months throughout the country.
The manager from Tesco Galway, Shane Faherty, has said that Irish people are feeling the pinch and “this move will give consumers the products that they are looking for in these tougher times. The new range and the price cuts are all on products that matter most to people. Our aim is to give our customers value and convenience under the one roof saving several trips for shopping around”.
Tesco Ireland is also to open 16 new stores this year, creating 1,200 jobs.