A survey of retailers has confirmed the need for special offers and own-brand products to entice more shoppers to spend.
In the survey by ADM Londis, retailers also called on the Government to provide more support to address business costs including wages and local government charges.
Some 62% of retailers surveyed said competition within the marketplace was the biggest challenge facing Irish grocery retailers.
ADM Londis boss Stephen O’Riordan said: "In our survey, almost 90% of retailers believe that it will be the second quarter of 2011 and beyond before the Irish economy returns to growth."
He said it was estimated that the fall in value of overall retail sales in Ireland is estimated to be more than 20% since market peak and added that it was "essential that the Government addresses the needs of small business by reducing local authority charges and purging the excessive amounts of ‘red tape’ and regulations imposed on independent retailers".