Spar operator Henderson Group's employee wages consume profits
In a recent financial report, Northern Ireland's leading retail group, Henderson Group, has disclosed a 12% drop in after-tax profits for the year 2025, despite achieving a 3.8% increase in turnover, reaching almost £1.4 billion.
The decline in profits, from £50.2 million in 2023 to £43.8 million in 2025, is primarily attributed to a significant increase in the group's wage bill. The rise in staff costs, which grew by almost 11% to £146.6 million in 2024, effectively "ate into profits," according to the company's directors.
Henderson Group, operators of the Spar and Eurospar brands in Northern Ireland, employed over 5,320 people in 2025, marking a 4% increase compared to the same period in 2023. The group's accounts were filed with Companies House in the UK.
The sales jump was considered "modest" by the directors, in line with industry trends against a backdrop of rising costs. The increase in turnover was attributed to "positive like-for-like performance" and expansion through acquisitions. Like-for-like grocery sales at Henderson Group increased by 1% in 2025.
Sales at Henderson Group's food service division climbed by more than 10% in 2025, a testament to the division's resilience amidst the challenges posed by Brexit and the Northern Ireland Protocol. However, the food service division continues to face uncertainty due to these factors.
The group's strategic investment in the workforce, aimed at staff retention and improved colleague engagement through increased remuneration and engagement initiatives, contributed to the rise in staff costs. Operating profits at Henderson Group decreased as a result of these investments.
Cost pressures, including inflationary driven wage growth and the UK government's fiscal policy, continue to add to the challenges facing the retail sector in Northern Ireland. The Windsor Framework has alleviated some of the challenges related to Brexit and the Northern Ireland Protocol, but uncertainty remains.
In conclusion, Henderson Group's financial results for 2025 reflect a scenario where rising operational expenses, particularly in labor, offset revenue growth, resulting in reduced net profitability. Despite the decline in profits, the group remains committed to its strategic investments and continues to expand its operations.
The strategic investments made by Henderson Group, particularly in labor costs, have contributed to a rise in the group's overall staff costs, which rose by nearly 11% in 2024. In the business sector, especially retail, cost pressures such as inflationary wage growth and UK government fiscal policy have added to the challenges that Northern Ireland's retail industry is facing.
