Tesco is still losing market share as consumers continue to favour the value and discount supermarkets to help them through the credit crunch.

Tesco had a 0.5 share point drop to 30.7 per cent in the 12 weeks to January 25, according to the latest TNS Worldpanel grocery market share figures.

Aldi lead the charge for market share, up 0.4 share points after recording year-on-year growth of 24.7 per cent as its discounted ranges continue to find favour amongst credit crunch shoppers.

The grocery market overall continued to grow on last year, up 6.4 per cent for the period.

Asda and Morrisons both lifted their share as they grew well ahead over the market as a whole. Asda grew 8.1 per cent and Morrisons 9.7 per cent respectively, the figures showed.

Waitrose has struggled to achieve growth in current market conditions with flat year-on-year sales resulting in a share decline from 3.9 per cent a year ago to 3.7 per cent.

The figures also showed that grocery price inflation had effectively stalled for the 12-week period, at 8.4 per cent, after the decline of the pound had an adverse effect on produce and imported food prices.