Irish Grocery Retail Q! and Q2 market update

Inside Irish Grocery Retail H1 2026

Our Director of Grocery Retail Recruitment, Nikki Murran, featured in the latest edition of ShelfLife Magazine to discuss what the first half of 2026 has told us about Irish grocery retail. Check out what she had to say below!

I’ve just finished reviewing all of our statistics, market data and recruitment figures from the first half of 2026, along with the feedback my team and I have gathered from retailers and candidates across the country. Each quarter we pull everything together to see what the numbers are telling us and, more importantly, whether they match what we’re hearing every day on the ground so I can share this information with our retailers.

There were a few trends that really stood out this time, so I thought I’d use this month’s article to share some of the biggest findings and what they mean for the grocery industry as we head into the second half of the year.

One thing is clear. Grocery retail continues to prove just how resilient it is.

Take-home grocery sales are still growing, online shopping continues to gather pace and inflation has eased to its lowest level since last summer. On paper, that’s encouraging. But dig a little deeper and you can see that shoppers are still being incredibly careful with their money. They’re making more shopping trips, buying a little less each time and looking harder for value.

That’s why retailers can’t afford to become complacent. Availability, promotions, own-label ranges and strong fresh food departments are making the difference. Customers are still spending, but they’re thinking much more carefully before they do.

Big battle

The battle at the top of the market remains fascinating. Dunnes and Tesco are virtually neck and neck, while Lidl continues to gain ground and online grocery has now become a €253 million part of the market. It’s another reminder that retailers are no longer managing just one shopping experience. They have to get both the physical store and online offering right, and neither can come at the expense of the other.

From a recruitment perspective, the market has been just as interesting. The biggest surprise for me has been the increase in senior hiring. We haven’t seen demand like this for experienced store managers, general managers and area managers in well over five years. Retailers aren’t just looking for people to keep the lights on. They’re investing in leaders who can improve commercial performance while building engaged, motivated teams.

Fresh food continues to be the biggest challenge, and that doesn’t look like it’s changing anytime soon. Every week we’re working on roles for deli managers, bakery managers, butchers and fresh food specialists, and the same issue keeps coming up. The best candidates aren’t actively applying for jobs. They’re already employed, they’re valued by their current employer and they’ll only move if the opportunity genuinely improves their career. That’s why businesses that move quickly almost always have the advantage.

What candidates want

One of the biggest changes I’ve noticed over the past couple of years is what candidates actually want.

Salary still matters, of course, and continued increases in the National Minimum Wage (NMW) have pushed expectations higher across almost every level of retail. But pay is no longer the whole conversation. Candidates want flexibility, supportive managers, career progression and a realistic work-life balance. They also want honesty. Telling someone they’re joining a ‘fast-paced environment’ isn’t exactly a unique selling point. Every grocery retailer in Ireland is fast-paced. Tell candidates what genuinely makes your business different instead.

We’re also seeing employers becoming much more deliberate with recruitment. Every hire has to justify itself, and interviews are becoming more thorough. Interestingly though, our own recruitment data shows the average time to hire has fallen from eight weeks to six. That’s not because the market has become easier. It’s because employers have realised that if they hesitate, somebody else will hire the candidate first.

If I had to pick one message from the first half of the year, it would be this: retention is becoming every bit as important as recruitment. Replacing experienced grocery managers is expensive, disruptive and time-consuming. By the time recruitment fees, onboarding, training and lost productivity are factored in, replacing one experienced manager can cost up to 30% of their annual salary. That’s a huge investment compared to retaining someone who’s already performing well.

Looking ahead

Looking ahead, I don’t see the second half of 2026 bringing any dramatic changes. Value will continue to drive customer behaviour, fresh food will remain one of the biggest competitive advantages retailers have, online shopping will keep growing and experienced leaders will continue to be in demand.

The retailers that will come out strongest won’t necessarily be the ones paying the highest salaries. They’ll be the businesses investing in good leadership, creating positive cultures, giving people genuine opportunities to progress and making decisions quickly when great talent becomes available.

After spending the last six months speaking with retailers and candidates across the country, that’s probably the biggest takeaway of all. Grocery retail has always been a people business, and despite everything that’s changing around it, that still hasn’t changed one bit.