Ireland’s grocery retail sector is entering 2025 with a mix of challenges and resilience, marked by significant wage increases and rising labour costs.
The revelation comes from Excel Recruitment’s Grocery Retail Salary Guide 2025.
The guide highlights that, while a minimum wage increase to €13.50 in January 2025 will help protect workers, it will also create a ripple effect in overall wages.
This change will push most stores to increase pay across the board by at least 5%.
The recruitment experts report that since 2020, the minimum wage has risen by 32%, which has prompted retailers to prioritise hiring and retaining top talent, despite tight margins.
In addition to this, new regulations on pension auto-enrolment and extended sick leave benefits add to the pressure, making it difficult for retailers – particularly small or medium-sized enterprises (SMEs) – to absorb the added costs.
‘Forward Focused’
Commenting on the report, the director of grocery retail at Excel Recruitment, Nikki Murran, said, “With last year’s costly roll-out of Deposit Return Scheme [DRS] equipment and heightened spending on security due to increased retail crime, grocery stores are feeling the strain more than ever.
“These changes go far beyond entry-level pay, affecting wages across the board and driving retailers to find competitive hiring strategies.
“Despite these obstacles, the sector remains forward focused, using key talent and innovative customer experiences as a competitive edge.”
According to the report, more retailers are investing in fresh-food offerings as a way of differentiating themselves in a crowded market.
Enhancements in deli, bakery and produce sections – as well as hiring skilled chefs, bakers and butchers – are intended to elevate store quality.
Murran says, “By hiring skilled talent for fresh-food sections, retailers aim to improve customer satisfaction and profitability.
“Many believe these investments will help foster community loyalty and counterbalance rising operational costs.”
Trends
Excel Recruitment’s report highlighted a number of emerging trends impacting the grocery retail sector.
These include operational changes, such as an increase in fresh-food roles and an investment in employer branding.
In terms of recruitment, flexibility for workers is becoming more of a priority, while attracting senior candidates, focusing on diversity and inclusion, and adjusting contract hours for a greater work/life balance are top of mind for employers.
As retailers continue to face financial pressures, Excel Recruitment’s report focuses on adaptive strategies, such as flexible working conditions and tech-driven recruitment, as key to maintaining a strong workforce.
Murran concluded, “Retailers are finding ways to stay competitive and continue delivering a quality in-store experience while adjusting to new economic realities.”
Read More: Grocery Sales Reach Year High In October As Dunnes Holds Market Lead – Kantar
