Tesco threat to Asda as sales of clothing rise

Tesco could overtake Asda as the leading clothes retailer by volume within three years, according to a top analyst.

Asda stole the crown from Marks & Spencer last month, when figures revealed that Asda's volume share was 9.4 per cent and M&S's 9.1 per cent.

Goldman Sachs retail analyst Keith Wills maintained that Tesco, whose 6.5 per cent share is up 67 per cent on last year, could control the biggest share in 2007.

Wills said that Tesco has more flexibility to extend stores than Asda.

However, Asda could fight back if it rolls out more George standalone stores.

Tesco posts interim results on Tuesday, and is expected to mount a non-food assault this autumn with new ranges at lower prices.