ASDA, which is owned by Walmart, yesterday reported a narrow 0.5 per cent like for like sales rise between 1 April and 30 June.
The company said it was pinning its hopes for growth on its acquisition of 147 Netto stores.
Asda said sales growth accelerated in the second quarter as its online price guarantee, which undercuts rivals by 10 per cent, proved popular with cash-strapped consumers.
But figures released yesterday by market research company Kantar Worldpanel showed that Asda’s market share dropped from 17.6 per cent to 17.1 in the 12 weeks to 7 August.
Overall grocery sales rose by 3.8 per cent year-on-year in the 12 weeks to 7 August, lower than the 5.2 per cent grocery price inflation in the period.
But budget retailers Aldi and Lidl have been benefitting from families tightening budgets.
German chain Aldi now has a 3.6 per cent market share and Lidl 2.6 per cent.