SuperValu-Centra has eclipsed Dunnes Stores to become the Republic's second most popular retailer, according to new data.

The Musgrave group franchises holds 23 per cent combined market share, nearly two points ahead of Dunnes, latest figures show.

SuperValu-Centra's slice of the market climbed almost a per cent in the 12 weeks to February 2nd, an upswing driven by dramatic growth in the convenience foods niche.

Musgrave has edged out Dunnes, which has seen its share slide by a third of a point to 21. 9 per cent. Such a slump is considered significant in the high- volume, low-margin grocery industry, where a fluctuation of even a fraction of a per cent can translate into millions lost or gained.

SuperValu-Centra, which this week announced record turnover at SuperValu in 2002, now has market leader Tesco in its sights. The UK multiple posted a 24.1 per cent share, up from 23.9 per cent, and is tipped to hit 25 per cent with the opening of new outlets this year.

The findings, by market researcher Taylor Nelson Sofres, (TNS) drew a mixed response from the industry.

Musgrave said TNS probably underestimates Centra's sales because it only measures short-listed groceries, excluding items that sell heavily in convenience retailers. Dunnes Stores declined to comment.

The research reveals discounters Aldi and Lidl increased their joint share by almost a third to 4.7 per cent, a performance that will concern established retailers as the no-frills German companies spread inexorably across regional Ireland.

But Superquinn, the Leinster-based group which has seen its market share level off recently, should be heartened by moderate increase to 8.6 per cent. Superquinn, which has repeatedly denied it is in the market for a takeover bid by overseas players, recently signed a deal to supply branded goods by Waitrose, the UK luxury foods producer.

The figures are published in the current issue of Retail Intelligence, the on-line edition of Checkout magazine.

Earlier this week, Musgrave said sales at Centra rose 18 per cent to €750 million in 2002 and unveiled plans to open 30 new stores this year.