Each of the "big four" grocers lost customer share in the last quarter despite increasing sales as Aldi and Lidl collectively accounted for half of the entire market's overall growth, figures show.

Lidl has leapfrogged upmarket supermarket Waitrose in the UK’s competitive food retail market, industry data showed yesterday, a sign that cash-strapped UK shoppers are still having to count their pennies.

The UK sales decline at Tesco has slowed for the fourth month in a row, industry data showed yesterday, adding to evidence that Britain’s biggest supermarket group is gradually recovering.

Discounters Aldi and Lidl stepped up their march across the UK supermarket industry in the last 12 weeks as the impact of price cuts by the country’s large grocers faded.

German discounters Aldi and Lidl have had three months of booming growth as more than half of British households visited at least one of the stores, according to latest industry data.

British supermarket Morrisons has been saved at the last minute from being kicked out of London’s blue chip index after its first rise in sales for nearly 18 months sent shares surging.

Under-fire supermarket Tesco has received some much-needed cheer after figures showed its sales grew for the first time in a year.