The Irish retail sector is navigating a complex landscape in 2025. While some companies are reducing their workforce due to economic uncertainty and increased online competition, the sector is also evolving. Employers are adapting to rising operational costs, shifting consumer behaviour, and new workplace expectations such as digital skills, sustainability practices, and robust pension provisions.
Among the most pressing challenges facing the sector today is the introduction of Pension Auto Enrolment, which mandates pension contributions for employees earning over €20,000 per annum.
Curious how Pension Auto Enrolment impacts your retail staff? Learn more with EmployersPensionHelpline.ie
Pension Auto Enrolment: The Retail Sector Feels the Pressure
Retailers across Ireland are feeling the strain of Pension Auto Enrolment, with implementation deadlines fast approaching. Employers must now factor in additional payroll costs, as they will be required to contribute to employees’ pensions through a new, state-managed system.
“Some proactive retailers have addressed this challenge positively by acting now—well ahead of the compulsory state system,” says Lorraine Connolly, who leads the Employers Pension Helpline at Specialist Pension Advisors, Qfinancial.ie.
Retailers are already under pressure due to rising costs, as highlighted by ISME, the Irish SME association. This new pension obligation adds another layer of financial responsibility.
Major Irish retail chains like Dunnes Stores, Marks & Spencer, SuperValu, Lidl, Aldi, and Sports Direct are already feeling the squeeze of rising payroll costs, digital transformation, and pension reform. Middle management roles in these companies are increasingly difficult to retain — and pension provision is now a key recruitment lever.
Yet, many forward-thinking retailers are accepting that Auto Enrolment is here to stay, and are responding decisively. Advice from both retail representative groups and pension advisors is clear: Act now to control how the pension system is introduced in your business.
With high staff turnover and difficulty retaining experienced middle management, pension provision has become a critical part of recruitment conversations. In fact, pensions are now being discussed at nearly every retail interview.
“Pension Specialists like Qfinancial.ie are helping employers set up cost-effective, compliant schemes—and even use them as a recruitment incentive from day one,” Connolly adds.
🟢 Access the Employers Pension Helpline »
Unlocking Former Pensions from Age 50: A Smart Move for Retail Managers
Traditionally, supermarket, fashion, giftware, and hardware managers entered the workforce through apprenticeships and stayed with one employer for most of their career. That era is changing fast.
“The days of a lifelong career with one retail firm are over,” says Declan Hardiman, who oversees the retail sector at UnlockPension.ie. “Now, many retail managers are changing employers to find better opportunities or reduce commute times.”
One popular financial option for professionals over age 50 is to unlock pensions from former employers. This allows them to:
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Access up to 25% of the pension as a tax-free lump sum
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Transfer the remaining balance into an Approved Retirement Fund (ARF)
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Continue working while drawing down retirement funds gradually
It’s a flexible financial planning tool for today’s mobile workforce.
🟢 Check if you can unlock your former pension now »
Beyond Pensions: Digital Skills, E-commerce & Sustainability Now Essential in Retail Recruitment
💻 Digital Skills in Demand
Retailers across Ireland — from Lidl and Aldi to Sports Direct — are now adapting recruitment strategies to attract digitally skilled staff who expect pension benefits as standard.
Retailers are prioritizing candidates with:
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E-commerce management experience
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Social media marketing skills
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Data analytics and customer journey insight
🛍️ E-commerce Growth is Here to Stay
While online shopping has stabilized since the pandemic, it remains a vital revenue channel. Retailers are expanding digital teams and investing in omnichannel strategies.
🌿 Sustainability & ESG in Hiring Decisions
Retailers are now prioritizing sustainability and ESG (Environmental, Social & Governance) credentials—particularly when hiring for senior roles. Green logistics, ethical sourcing, and local community engagement have become part of recruitment criteria.
Final Word
In 2025, Irish retailers must juggle pension compliance, rising costs, evolving recruitment needs, and increased competition from e-commerce.
Pensions are no longer just a financial product—they’re a strategic recruitment tool, a compliance necessity, and a benefit employees expect.
Q Financial.ie supports employees and management across Irish retail — from independent outlets to major names like Dunnes Stores and Marks & Spencer — helping them navigate pension changes and unlock former benefits.
Q Financial is here to help employers and employees navigate this new landscape with expert, tailored advice.
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Retailers: Don’t wait until the Auto Enrolment deadline hits.
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Employees: Don’t leave your old pensions behind.
🟢 Visit Employers Pension Helpline |
🟢 Visit UnlockPension.ie
QFinancial and is regulated by the Central Bank of Ireland C135240. With over 100 years of experience in personal, company and self administered schemes in Ireland and EU.
