DUNNES Stores is estimated to have lost up to £2.5 million during the two week strike which ended on Saturday. It is also expected to lose market share which may take some time to win back, according to industry sources.

The agreement concluded between management and workers was welcomed yesterday by the director of the Small Firms Association, Mr Brendan Butler. He estimates that over 100 member companies have had to place nearly 1,000 employees on temporary lay off because of the strike. He asked financial institutions and the Revenue Commissioners to adopt "a pragmatic approach" to the cash flow problems some Dunnes Stores suppliers experienced during the strike.

Dunnes profits are a well kept secret, but they have been estimated to be around £45 million a year. Turnover at the company's 73 stores is said to run to around £2 million per day.

Various sources reckon the company lost £2 million £2.5 million profit during the two week dispute. Perhaps more important for Dunnes is the battle to regain market share in what is a low margin, fiercely competitive market.

Sources say during the summer dispute in 1995 the company lost around 3 per cent of its market share in the grocery sector. "It then took them a year to move from 18 per cent up to 19.5 per cent."

"They will probably get back 65 per cent of their customers within a week," said one source. "Another 20 per cent or so will drift back within a couple of months. The remaining customers may never return."

Dunnes Stores director, Mr Andrew Street, who played a leading role in negotiations during the dispute said the company and the workers had come a long way in two weeks to resolve problems "which have restricted the natural development of this company in recent times".

All branches will reopen for business at 9 a.m. today. The 7,000 workers voted to return to work following meetings around the country last Wednesday, Thursday and Friday. The votes were counted on Saturday and the strikers voted by 59 per cent to 41 per cent for the terms.

There were fears that the workers would reject the settlement proposals as reports from the meetings showed that many strikers were dissatisfied at some of the proposals, particularly the stipulation that new full time staff would have compulsory overtime working and be paid only time and a half for it. In the past Sunday working was voluntary and paid at double time to full time employees.

The terms provide for full backdating of a 3 per cent productivity pay rise to September 4th, 1995, provision for 400 full time jobs and further talks on pensions, sick pay and other benefits. They also provide, for the first time in the firm's 50 year, history, for a formal agreement between the company and its unions. It has provision to refer problems which are insoluble in house to the Labour Relations Commission and the Lab our Court.

Welcoming the outcome of the ballot on Saturday, the general secretary of Mandate, Mr Owen Nulty, said time alone would tell if it was the beginning of a new era of industrial relations at the company. "The closeness of the vote indicates a deep sense of unease among the workforce about the company's ability to honour agreements entered into with their staff," he said.

After the votes were counted, union and management representatives met to formally endorse the new agreement.

The dispute also cost the Dunnes workers' union, Mandate, money. The trade union spent £600,000 in strike pay during the dispute.