Grocery retailers facing increased wage pressures in 2025

Grocery retailers are facing increased wage pressures next year, according to new research.

Excel Recruitment's latest Grocery Retail Salary Guide 2025 reveals that while a minimum wage increase to €13.50 in January will help protect workers, it will also create a ripple effect on overall wages, pushing most stores to increase pay by at least 5%.

According to Excel, new regulations on pension auto-enrolment and extended sick leave benefits will add to the pressure, making it difficult for retailers, particularly smaller and independent stores, to absorb the increased costs.

The report showed that retailers are increasingly investing in fresh food offerings as a differentiating factor in a crowded market, with many stores enhancing deli, bakery and produce sections, even hiring skilled chefs, bakers, and butchers.

"With last year’s costly rollout of Deposit Return Scheme equipment and heightened spending on security due to increased retail crime, grocery stores are feeling the strain more than ever," said Excel Recruitment Director of Grocery Retail Nikki Murran.

"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," Ms Murran said.