Irish grocery retailers have faced a sharp rise in labour costs over the past five years against a backdrop of wage increases, stiff competition for talent and an increasing need to pay for security staff, according to new data from Excel Recruitment.
The agency’s latest salary guide for the grocery retail industry reveals that with the increase in the National Minimum Wage to €14.15 per hour from January 2026, wage costs alone will have increased by nearly 40 per cent since 2020.
“When combined with the introduction of auto-enrolment, enhanced sick pay, higher insurance premiums, rising energy costs and the ongoing maintenance of Deposit Return Scheme infrastructure, it is clear that the pressure on retailers’ cost bases continues to intensify,” Excel said on Tuesday.
Salaries for trainee managers in forecourt and convenience retail outlets have risen by between 5 per cent and 7 per cent this year and are expected to reach €35,000 in 2026, according to the data.
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That compares with an annual salary for trainee managers of around €30,000 in 2020.
Excel said the increase reflects the “upward pull” of minimum wage increases and growing competition for early-stage talent.
“Retailers know that future store leaders are shaped early,” said Nikki Murran, director of grocery retail at Excel.
“They are investing in people from day one, using development plans and flexibility to make these entry-level management roles more attractive.”
Store manager pay is also on the rise, with average increases of 5 per cent reported in 2025 and similar growth expected next year.
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Ms Murran said the value of store managers within organisations has “only become clearer” as margins tighten across the industry.
Meanwhile, with retail crime on the rise, demand for specialised security staff has increased “significantly”, Excel said. Although security officer salaries have remained relatively stable over the past five years, the need to fill those roles represents a fresh expense for retailers.
“We are hearing from store managers that security is now as important as merchandising,” said Ms Murran.
“Many retailers are investing in training for in-house staff, improving CCTV systems, and hiring specialist officers who understand retail dynamics rather than relying solely on outsourced cover. The costs are rising, but so too is the focus on keeping teams and customers safe.”
Preliminary figures compiled and published in November by the Central Statistics Office (CSO) indicate that average hourly earnings among wholesale, retail, and vehicle repair workers have increased by 3.6 per cent in the 12 months to the end of September.
Separate figures published by the CSO last week suggest that annualised food price inflation remained high last month, but fell from 4.5 per cent in October to 4.3 per cent.
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