Irish retail sector shows strong growth despite global trade concerns, says Bank of Ireland head of Retail Sector Owen Clifford.
“Increased trade barriers that drive input costs and associated inflation would be very unwelcome for a sector already tightly managing its margin”
The Irish retail sector continues to demonstrate resilience and growth in the first quarter of 2025, with major chains expanding their footprint nationwide and shopping centres reaching over 95% occupancy rates.
Investment activity has remained robust across the sector, with Tesco opening several new Express format stores in Dublin, while Aldi, Lidl, Dunnes, Centra, and Spar continue their nationwide expansion. Cross-brand collaborations have emerged as a significant trend, with partnerships between Applegreen and Marks and Spencer, Circle K and Off-beat Donuts, and Dunnes and Iceland offering new retail propositions to Irish consumers.
The retail property market has seen strong investor interest, with notable transactions completed in Cork, Carlow, Kilkenny, Drogheda, and Dublin in recent months. International brands including Lego, New Balance, Pret A Manger, and Kiko have opened stores in Ireland, contributing to high occupancy levels across retail parks and shopping centres.
Potential impact of Trump’s tariffs
However, potential US tariffs and global trade tensions represent a challenge for the sector. “Increased trade barriers that drive input costs and associated inflation would be very unwelcome for a sector already tightly managing its margin,” according to Clifford.
To navigate these challenges, retailers are advised to diversify their sourcing strategies, implement segmented pricing approaches, strengthen private-label offerings, and enhance supply chain resilience.
The Outlook for 2025 remains positive for the sector, which generates approximately 300,000 jobs across Ireland. Grocery, convenience, home, beauty, and sports/wellness segments are particularly well-positioned to thrive in the evolving market landscape.
Continued investment in personnel development, digital transformation, partnerships, supply chain optimisation, and store networks is expected as retailers work to meet consumer expectations while managing profit margins in an increasingly competitive environment.
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