Retail Ireland welcomes new CCPC report on grocery sector

Retail Ireland, the Ibec group representing the Irish retail sector, today welcomed the publication by the Competition and Consumer Protection Commission (CCPC) of its updated high-level analysis of the Irish grocery market. The CCPC’s findings clearly demonstrate that competition in the grocery retail sector in Ireland is working effectively, with consumers continuing to benefit from a dynamic and competitive market. The report confirms that there is no evidence of excessive profit margins or anti-competitive behaviour in the sector. The retail sector continues to play a vital role in delivering value and choice to consumers.

Key findings from the CCPC report include:

• No evidence of anti-competitive behaviour in the Irish grocery sector.
• Increased competition over the past two decades has delivered greater choice, improved service, and food price inflation below European averages.
• Profit margins in the sector are not notably high when compared with international benchmarks.
• Rising food prices have been largely driven by increases in agricultural input costs, which have been higher in Ireland than the European average.
• Despite recent price rises, grocery prices have increased at a slower rate than key input costs, reflecting the cushioning effect of competition on consumers.