DISCOUNTERS Aldi and Lidl have continued to challenge the dominance of Britain’s leading supermarkets after a Christmas driven by lower prices.

More than half of all British households visited at least one of the two retailers over the 12 weeks to January 4, latest research from Kantar Worldpanel showed.

Aldi’s market share rose to 4.8 per cent from four per cent a year earlier while Lidl advanced to 3.5 per cent from 3.1 per cent a year ago.

Overall, prices were 0.9 per cent lower on a like-for-like basis due to lower commodity costs and the continuing price war.

Fraser McKevitt, of Kantar Worldpanel, said: “Shoppers chose to buy a little bit more this Christmas compared with last year. Shoppers were the big winners at Christmas, with cheaper grocery prices encouraging them to spend more at the tills.”