Supermarket chain Tesco grew its market share for the first time in five years after three-month sales rose 1.3 per cent, providing further evidence that the grocer's turnaround plan is working.

Market researcher Kantar Worldpanel said on Tuesday that Tesco grew sales in Britain by 1.3 per cent in the 12 weeks to October 9th, reversing 18 months of declining sales and helping boost its share of the grocery market to 28.2 per cent.

Three rivals decline

The data shows Tesco is pulling ahead of its three biggest rivals in Britain’s supermarket sector, as number two player Sainsbury’s posted a 0.4 per cent fall, followed by sector laggard Asda, which recorded a 5.2 per cent drop, and Morrisons, whose sales declined by 3 per cent.

Tesco's market share growth shows that its fightback against the rise of German discounters Aldi and Lidl is working, with shoppers won over by its lower prices, streamlined product ranges and better customer service.

Tesco shares traded up 1.8 per cent to 205 pence, outperforming Britain’s blue-chip index, which was trading 0.8 per cent higher. – (Reuters)