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IRISH consumers are cutting back on their grocery bill and are opting to do their weekly shop in discount supermarkets.

Prices have continued to rise and Ireland's grocery market has contracted for the first time since August 2010.

The latest grocery market figures from Kantar Worldpanel in Ireland, show that the grocery market has fallen in value by 0.5pc, compared with the same period last year.

Aldi and Lidl have continued to record significant quarterly gains, with Aldi increasing its market share by 25pc and Lidl up by 6.5pc.

Tesco has continued its market leadership position and has maintained a five-share point lead over nearest rival Dunnes Stores.

The commercial director at Kantar Worldpanel, David Berry, said that there was a notable gap between the performance of the multiple retailers and the convenience and specialist channels.

"Each of the major retailers have placed further emphasis on the value they offer in store and this, combined with a 'back to school' push, has succeeded in switching sales away from smaller outlets," he said.

"Aldi's strong growth derives from being the only retailer to perform positively in all areas - it has more customers and these customers are shopping more often and spending more each visit."