Supermarket giant Tesco has increased its share of the British grocery market despite more competition from rivals, according to new figures.
Tesco saw its market share rise by 0.2% to 31.6% in the 12 weeks to June 17, according to market research firm TNS Worldpanel.
Rival chains Asda and Sainsburys - the UK's second and third biggest supermarket chains - increased their market share to 16.6% and 16.2% respectively, although the last of the big four, Morrison, saw a fall to 11.2% compared with last year.
But both Walmart-owned Asda and Sainsburys are putting their larger rival Tesco under more pressure with stronger sales growth, the figures showed. The firms posted 7% year-on-year sales growth, compared with 6% for Tesco.
The figures come a week after Tesco surprised the City with lower-than-expected sales figures for the first quarter of its financial year as the retail giant warned of a tougher outlook for consumer spending hitting its non-food business.
Sainsburys' like-for-like growth outstripped Tesco although it also warned of a more "competitive" sales environment. Morrison, Asda and Tesco all launched price cutting drives last week.
TNS Worldpanel's research director Edward Garnier said the data was evidence of "healthy competition" in the grocery sector as supermarket chains enjoyed 6% year-on-year growth in grocery sales overall.
He added: "Very recent speculation of a slow-down in consumer spending on groceries across the board is yet to be reflected in these figures."
Seymour Pierce analyst Andrew Wade said the continued growth in the grocery market supported the view that food sales would be "largely resilient" to any slowdown in consumer spending.
Of the major chains, Waitrose showed the strongest sales growth with an 8% rise on last year, a performance matched by independent grocers which also saw sales growth of 8%.