Tesco is fighting back in the store wars and the latest supermarket share figures from Kantar Worldpanel covering the 12-week period up to the end of April show the retail giant drawing level with and SuperValu.

The new figures also show the dramatic rates of growth recorded by the German discounters Aldi and Lidl slowing significantly with both posting single digit growth for the first time in five years.

Both SuperValu and Tesco now have a market share of 25 per cent with Tesco fighting hard to regain ground after losing the number one slot it lost to Supervalu last month.

"Intense competition between the supermarkets has resulted in more choice and better value for shoppers, highlighted by the low level of inflation and prices increasing by just 0.2 per cent," said David Berry of Kantar.

According to the figures many staple grocery items are now cheaper than they were last year with the price of meat and vegetables both dropping by 3 per cent while bread by has fallen by an average of 2 per cent

Among the big three retailers Dunnes posted the strongest sales growth of 3.6 per cent lifting its market share from 21.5 per cent to 22 per cent.

The increase comes despite industrial action taken by staff in the build up to Easter. One of the key positives for Dunnes has been its strength in Dublin, an area where grocery sales are growing and where it now accounts for over a quarter of shopper spend.

While Tesco’s market share is lower year-on-year it has improved its position versus last month. Its improvement lifted its market share to 25 per cent and places it on the same footing as SuperValu.

The amount of groceries sold at Tesco has remained flat, but value sales have declined because of shoppers choosing to pick up cheaper goods in store. SuperValu’s sales have remained in growth for the eighth month in a row, largely thanks to the retailer’s ability to consistently win new shoppers.

Its plan to open four new stores this year gives it the opportunity to grow sales further and out-perform the overall market.

The growth rate of both Aldi and Lidl has slowed significantly. Aldi posted growth of 8.8 per cent while Lidl’s rate of growth was 7.8 per cent. This is the first time since 2010 that both Aldi and Lidl have grown their sales by less than 10 per cent.