Dunnes Stores posted the strongest sales figures of the mainstream supermarkets in the last quarter and the latest market share figures show it increasing its sales in the 12 weeks to the middle of August by 8.2 per cent giving it a total share of 22.4 per cent.

According to the latest figures from retail analysts Kantar Worldpanel, only Lidl came close to the indigenous retailer with a sales increase of 7.7 per cent taking its total market share to 9.1 per cent.

Tesco has held onto the top spot despite seeing its sales falling by 1.1 per cent over the last quarter. It currently has 24.8 per cent of the market compared to SuperValu's 24.5 per cent which saw its sales fall by 0.8 per cent.

Aldi has seen sales grow by 3.8 per cent which takes its share of the market to 8.7 per cent.

"Dunnes' success is in large part thanks to the continuation of its 'Shop and Save' campaign," said the director of Kantar Worldpanel in Ireland David Berry.

“Although fewer people have shopped with the retailer this period, these customers have been encouraged to spend more, with the average shop now costing €34.50 - an increase of more than €5,” he said.

“We’ve seen Tesco’s performance improve in recent months, and the past 12 weeks are no exception – sales decline now stands at just 1 per cent,” Mr Berry added.

“As its performance continues to improve, Tesco retains the number one position in the market with 24.8 per cent share, despite an ongoing tussle with SuperValu for the top spot,” he said.

Mr Berry attributed the somewhat better performance by Tesco to an increase in customer numbers, with more than 20,000 new shoppers playing “a vital part in the supermarket’s recovery.”

Inflation in the grocery market currently stands at 1.3 per cent up from 0.7 per cent in the last previous quarter .