Tesco had its worst sales decline in the UK two decades, Kantar Worldpanel data showed today, a week after Britain's largest supermarket company said it will replace chief executive officer Philip Clarke.

Tesco’s sales fell 3.8 per cent in the 12 weeks ended July 20, the steepest decline since comparable records began in 1994, the research company said today.

The retailer’s share of its domestic market fell 1.4 percentage points to 28.9 percent.

Mr Clarke lost his job after struggling to compete with discounters Aldi and Lidl at the low-price end of the UK grocery market, and upscale chains such as Waitrose at the other.

The two German discounters both reported record market share for the past three months as shoppers flock to their low- frills offerings, Kantar said today.

Waitrose recorded sales growth of 3.4 per cent and increased its share of the market to 4.9 per cent from 4.8 per cent.

“Waitrose has continued to resist pressure from the competition, testament to its policy of maximum differentiation,” said Edward Garner, director at Kantar Worldpanel director.

Aldi’s share of the market jumped more than a percentage point to 4.8 per cent, with sales growth of 32 per cent, while Lidl reported revenue growth of 20 percent in the period and an increase in market share to 3.6 per cent.

Asda’s and Sainsbury’s market share was unchanged at 17 per cent and 16.6 per cent respectively, Kantar Worldpanel said, while Morrison Supermarkets saw its share of revenue decline to 11 per cent from 11.5 per cent.

Bloomberg