Discount grocers Aldi and Lidl dramatically increased their market share over the Christmas period as £1 in every £14 in grocery spending went to the two retailers.

They took a 7.1 per cent share over the 12 weeks to January 5 compared to 5.8 per cent the year before, with Aldi increasing total sales to more than £1 billion.

Data from Kantar Worldpanel confirmed Bradford-based Morrisons as the big loser in the sector as it was the only business to see a fall in total sales. Its delay in launching an online operation – which started last week – saw it miss out on a web-ordering surge that propped up its rivals.

Morrisons dipped from 12 per cent to 11.5 per cent of market share as total sales fell by one per cent. It missed out on a 22 per cent increase in internet grocery sales over the period, with 15 per cent of households placing orders.

Aldi’s market share climbed by nearly a third from 3.1 per cent to four per cent as sales rose 29.4 per cent to £1.08 billion. Lidl’s share increased from 2.7 per cent to 3.1 per cent, with revenues up 17.5 per cent to £528 million.

Total grocery sales were up 2.9 per cent but upmarket Waitrose, which has a store in Otley, raced ahead with a 6.4 per cent improvement.