Northern Ireland’s ‘extraordinary’ year in retail

Innovation will be key to maintaining competitiveness for retailers in 2025.

While the focus remains on navigating economic pressures, Northern Ireland retailers will need to balance affordability with quality to ensure shoppers continue to feel supported.

In an exclusive piece for the 2025 Neighbourhood Retailer Yearbook and Marketing Guide, Business Development Director at Kantar, Emer Healy reflects on an extraordinary year in retail, while looking ahead to what 2025 has in store.

Grocery inflation remained higher in Northern Ireland than in the Republic of Ireland and Great Britain, thus contributing to a fiercely competitive retail environment. The impact of inflation was evident in household budgets, with the average grocery bill rising by £420 annually.

However, the latter months of the year signalled a possible turning point, with inflationary pressures easing and retailers using this opportunity to encourage consumer spending, with targeted promotions and discounts making groceries more affordable.

As Emer explains, these promotional activities emerged as a key strategy for retailers looking to maintain footfall and drive sales, with promotional spending reaching almost £1 billion.

The rise of own-label purchasing also continued, with a 9.4% year-on-year growth in this area, with consumers spending an additional £22 million on own-label ranges.

This is a trend likely to remain to the fore of retailers’ strategies in 2025, as well as promotions and convenience remaining central themes.

READ THE FULL PIECE IN THE 2025 NEIGHBOURHOOD RETAILER YEARBOOK AND MARKETING GUIDE HERE