Tesco has lodged an appeal with An Bord Pleanála relating to the decision by Dublin City Council to give developer Dunmull the green light for a new Aldi store and a nursing home on the Malahide Road at Clare Hall in north county Dublin.
Tesco operates a store at the Clare Hall shopping centre and, in its appeal, said the proposal does not accord with the zoning objective for the site as it does not provide a suitable mix of uses that will provide a benefit to the area.
It added that the development does little to integrate with the surrounding developments and will result in an isolated island of development. A decision is due on the appeal in June this year.
The planning appeal comes against the background of continued growth by Aldi in the Irish grocery retail market.
Latest figures from consumer insights agency Kantar Worldpanel show that Aldi has a 10.6% share of the Irish market. Tesco has a 22.4% share and is jostling for first place with SuperValu and Dunnes Stores.
In December, Aldi announced plans to create 400 jobs in Ireland, over the next three years, through the opening of 20 new stores. It already employs 3,200 people here across 128 stores.
In 2015, An Bord Pleanála refused plans for an Aldi store following a successful appeal by Tesco. Tesco has also tried to block a number of Lidl stores in Ireland.
In its latest appeal Tesco said it supports the principle of additional competitive retail floorspace in Clare Hall but said it is concerned that the issues raised “do not appear to have been adequately considered by the planning authority in their assessment”.