Aldi is now Britain’s fifth largest supermarket after increasing market share by 0.6 percentage points to clinch fifth place ahead of the Co-operative for the first time, according to Kantar Worldpanel figures.

The latest grocery market share figures from Kantar Worldpanel, published for the 12 weeks ending 29 January 2017, revealed that the discounter grew sales by 12.4% year on year to increase market share.

Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, said: “Just a decade ago Aldi was the UK’s 10th largest food retailer, accounting for less than 2% of the grocery market. Since then the grocer has grown rapidly, climbing the rankings by an impressive five places to hold a 6.2% market share. Underpinned by an extensive programme of store openings, the past quarter has seen Aldi attract 826,000 more shoppers than during the same period last year.

“Despite being overtaken by Aldi, Co-op’s 2% sales increase was well ahead of the market, continuing a run of growth stretching back to July 2015. A significant own label sales increase of 7% was behind the strong performance, with healthier ranges successfully catering to consumers’ good intentions for the new year.”

The market continues to grow faster than it did in 2016, with supermarket sales up 1.7% with eight of the nine major retailers witnessing positive sales growth during the past 12 weeks.

Morrisons was the fastest-growing retailer within the big four, increasing its market share for the first time since June 2015 with a sales uplift of 1.9% year on year, with premium own label sales up 35%, while its revamped ‘The Best’ range made its way into 14% of Morrisons baskets.

Tesco’s sales grew for a fifth consecutive period, up 0.3% year on year as its market share fell to 28.1%. Sainsbury’s sales remained flat as market share fell by 0.3 percentage points to 16.5%, while Asda sales fell 1.9%.

Waitrose sales rose 3.4% to increase its market share to 5.3%, while Iceland sales went up by 8.6% and a 9.4% year on year sales increase for Lidl buoyed its market share by 0.3 percentage points, to hold 4.5% of the UK grocery market.