Tesco recorded a 4% drop in year-on-year sales in the 12 weeks to 18 August, while Aldi and Lidl continued to deliver strong growth, according to the latest figures from Kantar Worldpanel.

The multiple’s share of the market fell to 28.8%, down from 30.2% last year and a high of 31% in 2011.

Aldi’s market share increased from 3.7% to 4.8%, while sales soared by 29.5%, and Lidl was not far behind with sales growth of 18.3% and a 0.5% increase in market share to 3.6%.

Kantar’s latest grocery share figures also showed that grocery price inflation fell for the 11th consecutive period to the lowest level since October 2006 - at just 0.2%.

Edward Garner, director at Kantar Worldpanel, said: “Competitive pricing among the big grocers and deflation in the price of staple items such as vegetables, milk and bread has driven inflation down yet again. This naturally impacts on the overall growth of the grocery market, which has fallen to a 10-year record-low of 0.8%.”

Asda and Waitrose also performed well, with sales growth of 1.2% and 3.6% and a modest rise in market share to 17.2% and 4.9% respectively.

Garner said the two retailers have achieved growth with differing strategies. “Asda has pushed its’ ‘price lock’ strategy to keep on everyday essential items low, while Waitrose is running competitive offers on home delivery alongside offers for myWaitrose card users allied to its overall quality and provenance positioning.”