The buoyant grocery market over Christmas has carried into the new year. Retailers experienced a 5 per cent increase in sales, compared with the same period last year.
However, there is growing competition in the market from Tesco rivals Asda, Sainsbury's and Morrisons.
Both Asda and Sainsbury's market shares have continued to rise to 16.8 per cent and 16.5 per cent respectively. Morrisons' share remained stable as sales rose 4 per cent, compared with the same period last year.
Waitrose and Iceland also posted robust sales figures over Christmas and into the new year. Waitrose has successfully tapped into the ethical trading and healthy eating trend.
The collapse of Kwik Save's share has fuelled strong performances at value grocers Aldi and Lidl.