Families are continuing to cut back on their weekly shop spending €67 less on groceries this year compared to 2012. Figures from Kantar Worldpanel in Ireland show that the overall market has declined by 0.2% in the last year.
Shoppers with children appear to be hardest hit and are switching to discount stores in increasing numbers.
The combined market share of discount retailers Aldi and Lidl is likely to hit 15% by year end. However Tesco maintains its dominance with almost 28% of the market.
In the past 12 weeks Aldi, Lidl and SuperValu were the only retailers to increase market share, growing to 7.0%, 7.4% and 19.5% respectively.
Tesco's share of 27.6% is in line with its 2011 performance, but a drop from the 28.8% recorded in 2012. Dunnes' share now stands at 21.5%, down from 22.2% last year and Superquinn has held share at 5.4%.
Kantar Worldpanel operates a panel of 3,000 households in the Republic and a panel of 650 households in Northern Ireland.
Mark Thompson is a Director at Kantar Worldpanel. He says households are finding it extra tough right now.