Asda beats Tesco over Christmas

The research showed that Leeds-based Asda outperformed the broader market, echoing research from Nielsen last week.

Kantar Worldpanel said overall grocery sales rose 4.8 per cent in the 12 weeks to December 25. That lagged a 5.9 per cent increase in food price inflation, suggesting shoppers are cutting back on the number of groceries they buy and switching to cheaper alternatives.

Tesco, which reports Christmas sales figures tomorrow, lagged the broader grocery market with sales growth of 3.3 per cent over the 12-week period.

The supermarket giant started cutting prices in September in a bid to reverse a drift lower in its market share and predicted its sales would suffer in the short term as a pick-up in volume would lag an immediate drop in cash taken at the till.

Asda outperformed the broader market with sales growth of 7.3 per cent while Sainsbury’s , which reports third-quarter sales today, saw sales grow 5.5 per cent and its market share reach its highest level since March 2003.

Bradford-based Morrisons saw sales grow by 5.1 per cent.

Upmarket grocer Waitrose continued its run of strong sales growth with sales up 9.1 per cent as wealthier customers treated themselves over Christmas.

But at the other end of the market Waitrose was outpaced by budget chains Lidl, Iceland and Aldi. Aldi reported sales growth of 17.9 per cent, Iceland saw sales growth of 11.2 per cent and Lidl reported sales growth of 10.9 per cent.