Each year at Excel Recruitment, we conduct a comprehensive, industry-wide survey to gauge market trends for the coming year. This year, we are excited to share the findings from our 2025 salary guide, which reflect the anticipated impacts of the most recent National Minimum Wage increase. This year’s survey revealed several noteworthy insights. The Irish grocery retail sector is undergoing significant transformation as it heads into 2025. Amid rising operational costs and fierce competition, the industry remains resilient, with a clear focus on fresh food offerings, talent acquisition, and adaptability. Below outlines the key salary trends, challenges, and emerging priorities that are likely to shape this evolving landscape in the year ahead.
Key Trends Shaping the Industry:
1. Investment in Fresh Food and Talent
Fresh Food sections have emerged as the cornerstone of many retailers’ strategies, aiming to enhance margins and attract discerning customers. The guide highlights a 20% increase in fresh food roles during late 2024, underscoring the industry’s commitment to innovation and quality. Retailers are hiring chefs for the first time, as well as prioritising bakers and butchers, to elevate their offerings. Despite a tight labour market, these roles remain a top priority, reflecting their importance in delivering competitive advantages.
2. Flexibility as a Priority
Flexibility continues to drive employee attraction and retention. Since 2019, 60% of retailers have adjusted contract hours to cater to candidates seeking improved work-life balance. For job seekers, flexibility is crucial, with 25% ranking it as their top consideration when exploring career opportunities.
3. Diversity, Inclusion and Employer Branding
Irish retailers are placing greater emphasis on diversity and inclusion during recruitment, recognising the benefits of a workforce that mirrors their customer base. Employer branding has become a key differentiator in a competitive labour market, with companies leveraging their culture and values to attract top talent. Advanced tools like AI and data analytics are also being employed to enhance recruitment processes and broaden the candidate pool.
4. Rising Operational Costs
The sector faces ongoing challenges from increasing costs. A 6.3% rise in the national minimum wage (now €13.50) is having a cascading effect on wage structures. Additional regulatory pressures, such as pension auto-enrolment and expanded sick leave benefits, are further straining margins. Retailers are also contending with higher costs associated with combating theft and anti-social behaviour, necessitating increased investment in security measures.
Salary Trends Across the Sector:
The 2025 salary guide provides an in-depth look at compensation across roles, from entry-level positions to senior management, highlighting notable trends across store formats:
Store Managers in smaller supermarkets earn between €45,000-€60,000 annually, while those in large supermarkets command €70,000-€120,000, depending on experience. Fresh food managers in larger supermarkets earn €38,000-€48,000, reflecting the heightened focus on premium offerings in this area. Specialist roles such as bakers and butchers earn €16.00-€17.50 per hour, with managerial roles in these specialities reaching up to €45,000 annually. These positions are vital for differentiation and customer satisfaction. Hourly wage roles, including sales assistants and deli supervisors, also show adjustments, with pay ranging from €14.00 to €16.50 per hour based on experience.
Challenges and Opportunities:
Navigating wage increases – Since 2020, the minimum wage has risen by 32%, significantly impacting retailers’ operational costs. While these increases aim to improve employee welfare, the compel business to re-evaluate their overall compensation strategies to maintain competitiveness.
Enhancing the employee experience – Transparency and comprehensive benefit offerings are becoming increasingly important during recruitment. Employees are more likely to accept roles when provided with clear information on compensation and benefits. Retailers that prioritise work-life balance and flexibility will be better positioned to attract and retain talent.
Technological integration – the growing use of AI and other technological advancements is revolutionising recruitment. These tools allow companies to target suitable candidates more effectively, optimising hiring processes and ensuring alignment with the sectors broader focus on innovation and sustainability.
Combatting retail crime – rising theft and anti-social behaviour are forcing retailers to allocate significant resources to security. While these measures are essential for safeguarding employees and customers, they add to the industry’s financial burdens.
Future Outlook:
Despite these challenges, the Irish grocery retail sector remains optimistic about 2025. Investments in fresh food, talent and innovation are expected to bolster customer loyalty even as costs continue to rise. Retailers’ focus on sustainability and aligning with consumer preferences ensures a competitive edge in the market. Moreover, technology and commitment to diversity and flexibility highlight the industry’s forward-thinking approach to workforce management. Those who adapt to these trends will likely emerge stronger, even in a tight labour market.
For those interested in a full copy of this year’s salary guide click here
