Tesco's lead in the grocery market has narrowed to 0.8%, according to the latest figures from Kantar Worldpanel, as discount rivals continued to hit traditional retailers.

The British chain remains the biggest grocer in Ireland with a share of 26%, according to the figures, however this is 1.5% lower than the share recorded in the first quarter of last year.

Supervalu, meanwhile, has continued to close the gap on Tesco despite suffering its own drop in market share during the three month period.

The chain – which now includes 24 stores formerly operating as Superquinn – had a market share of 25.2% in the 12 weeks to 30 March, down 0.1% on the same period of 2013.

Dunnes Stores also saw its market share decline year-on-year, with the retailer taking 21.9% of consumer spend in the three month period compared to 22.5% in 2013.

As has been the trend for some time now, the main discounters continue to see the biggest gains as shoppers move away from the more traditional players.

Aldi recorded a market share of 7.9% in the 12 weeks to late March, according to Kantar, a 1.5% rise on its share in early 2013.

Lidl, meanwhile, had a share of 7.5% in the three month period – compared to a 6.7% share in March of last year.