A report from Ireland’s Competition and Consumer Protection Commission (CCPC) indicates that profit margins for the Irish supermarkets do not appear to be “notably high”.
The report showed that for the year to February 2024, Tesco Ireland's operating profit margin decreased to 3.7% from 4% the previous year.
Musgrave's profit margin also declined to 2.4% in 2023, a slight drop from 2.5%, while Aldi saw its profit margin reduce to 0.8% in 2023, down from 0.9% in 2022.
In the update to 2023's high-level analysis of the Irish grocery retail sector, the consumer watchdog has stated that Irish supermarkets' profit margins are in line with those seen in the UK and other European regions.
The CCPC’s review encompassed an examination of market concentration, trends in grocery pricing both nationally and internationally, and broader issues pertinent to the sector that are within its scope.
The findings from its analysis also revealed no evidence to suggest that competition within the Irish grocery retail sector is not working.
It also notes that enhanced competition since 2005 has yielded significant advantages for consumers.
Food price hikes in Ireland have remained substantially below the European average, aligning with a period of intensified market competition in Ireland.
The CCPC stated: “While food prices in Ireland remained high internationally, food inflation during the period analysed had been the lowest in the EU [European Union]”.
The analysis indicates a considerable rise in grocery prices starting from 2021, with Irish consumers facing a 27% surge in prices by June 2025.
The report continued: “Ireland has experienced significant cumulative price increases since 2019 in import prices, agricultural commodity prices and producer prices, but retail prices have increased at a much slower pace.
“This may indicate that retailers are absorbing some of the cost pressures rather than passing them fully on to Irish consumers.
“While the CCPC has not seen evidence to justify an in-depth study of the grocery retail sector, it remains a key market for the CCPC, which we will continue to review.”
“Profit margins for Irish supermarkets not “notably high”, says CCPC” was originally created and published by Retail Insight Network, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
