Tesco Ireland chief executive Tony Keohane said the prices of 12,500 products had been cut in 11 stores in nine towns which are south of the border with British-ruled Northern Ireland.
"The cuts are up as high as 25% and average 22% across the range," Keohane told RTE state radio.
"We feel this is as a move to secure jobs, to secure employment. Shoppers going across the border is no good to anybody. This move is to stem that."
The price cuts follow a decision by Tesco to centralise buying for its Irish outlets through international suppliers.
"When currency costs and travel and journey times are taken into account, we believe many customers will find it is cheaper to shop in these stores south of the border," Keohane added.
Cross-border trade has become a major drain on Ireland's economy with a recent government report revealing up to €550 million ($735 million) was spent by Irish shoppers in Northern Ireland last year.
The report, by the revenue commissioners and the Central Statistics Office, said the sterling-euro exchange rate was the primary reason for the cross-border exodus but differences in the rates of VAT and excise duty also lowered prices.
It said that "cross-border shopping is likely to remain an issue as long as sterling remains weak" against the European single currency.
Ireland sank into a deep recession during the first half of 2008, as the former Celtic Tiger economy was battered by the international financial crisis.
Source: AFP
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