FOOD prices for basic items could rise next year due to a hike in the minimum wage, experts have warned.
Research shows that with salaries set to increase in January, it will have a ripple effect on overall wages, pushing most shops to increase pay by at least five per cent.
According to Excel Recruitment’s latest Grocery Retail Salary Guide 2025, minimum pay for workers has increased by 32 cent since 2020, putting pressure on beleaguered storekeepers.
Added to this, new rules on pensions and extended sick leave benefits have increased outgoings for retailers already struggling to absorb the costs.
Nikki Murran, Director of Grocery Retail at Excel Recruitment explained: “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.
“These changes go far beyond entry-level pay, affecting wages across the board and driving retailers to find competitive hiring strategies.”
The report said many businesses are having to invest heavily in fresh food products in a bid to compete in a crowded market.
It found that a large number are enhancing their deli, bakery, and produce sections, with some even hiring skilled chefs, bakers, and butchers to attract customers.
Murran said that some food prices may rise but that smaller businesses could be forced to shut as a result of the cost increases.
She told the Irish Sun: “While an increase in food prices is a potential concern, the immediate impact appears to be the closure of smaller businesses unable to withstand pressures such as rising labour costs from NMW increases, extra sick pay and pension auto enrolment.
“Most retailers are doing their best to price competitively in order to stay attractive to consumers in this competitive market.”
She also said retailers felt under pressure to compete in terms of food offerings and that this was being seen across the sector.
Murran said: “Fresh food offerings, quality, and service are how most retailers differentiate themselves in today’s market.
“Many stores are investing in extra talent in their Fresh Food departments as well as revamps in their stores to expand their food-to-go ranges in a bid to grow their market share, attract and retain customers.”
CHRISTMAS CHOCOLATE
This comes as a popular chocolate brand has made a major change to their festive offering – with a top-selling Christmas favourite now available in TWO sizes.
Tony’s Chocoloney has revealed they’re making their huge iconic Christmas countdown calendar also available in a smaller version for the first time ever.
And the two Christmas calendars are already selling out across Irish stores – with both not available from the exact same retailers.
Tony’s bosses revealed that their “returning big favourite” – the revamped mega countdown calendar – is “back and better than ever” with a brand new design.
The ethical choc maestros, on a mission to make all chocolate production totally slave-free, have kept their calendar slots unequally divided to highlight inequality in the chocolate industry.
The calendar is packed with 25 tasty Tiny Tony’s chocolates in ten fun flavours and is available in Dunnes Stores and Tesco, as well as speciality stores like Brown Thomas.
