Tesco said is slashing prices at stores along the border in the Irish Republic to stem an exodus of shoppers into Northern Ireland.
The supermarket giant is cutting prices by as much as 25% at some shops.
The move is directed at Sainsbury's and Asda in Northern Ireland.
Many shoppers have headed across the border in recent weeks as near pound-euro parity means goods in the north are substantially cheaper than their counterparts in the south.
Bosses on Saturday shut down 11 outlets in border counties worst affected by the flow of shoppers to restock shelves with goods sourced from the UK.
The company said the move would narrow the price difference of thousands of household goods and groceries to its lowest level between the north and south in three decades.
Announcing the reopening of the stores in counties Donegal, Sligo, Leitrim, Cavan, Monaghan and Louth this morning, Tesco Ireland chief executive Tony Keohane said prices on 12,500 goods were reduced by an average of 22%.
"This substantial investment will enable us to compete in the long term with prices north of the border and will remove the incentive or the need for consumers to travel, which has been bad for jobs, for local economies and the national economy," he said.
"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."
Mr Keohane said the new prices were "long term structural changes" and not just temporary promotional deals.
He added: "We are starting this in these 11 stores to secure jobs and livelihoods in the border towns."
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