The grocers' federation RGDATA has sought to block German discount retailer Aldi from opening a high-profile food outlet on the outskirts of Dublin.

RGDATA lodged a planning objection to Aldi's proposed 1,283 square-metre outlet at Newlands Cross, Clondalkin, warning the development would attract extra traffic to an area already swamped by rush-hour congestion.

The stand-off between small retailers and the aggressive German chain is set to be repeated across the Republic as Aldi, which has to date confined itself to city centres and provincial towns, fixes its gaze on the lucrative suburban market.

RGDATA is determined to resist Aldi's push, arguing that single-unit developments should not be allowed compete head-to-head with shopping centres in residential zones.

This is the second occasion Aldi has attempted to locate on the Newlands Cross site, adjacent to Bewley's Hotel. It was denied planning permission in 1992 when its proposals fell foul of a prohibition on "warehouse" stores in the area.

Aldi has radically revamped its plans and is now seeking to build three retail outlets, a creche and car park. But RGDATA believes the company is paying lip service to planning stipulations, insisting the store will be identical in character to existing Aldi branches. A second German chain, Lidl, is also making inroads. Both have wooed Irish customers with an aggression that has caught established rivals off guard.

Since arriving in Ireland, Aldi and Lidl have between them captured almost 3 per cent of the retail market.