DISCOUNT grocery chains continue to outshine their “big four” supermarket rivals, it is claimed.

And Huddersfield is one of the key battlegrounds for food retailers as consumers tighten their belts.

Latest figures show that German-owned chain Lidl increased its market share from 2.3% to a record 2.5% in the 12 weeks to March 20.

Frozen food chain Iceland, chaired by Grange Moor-born Malcolm Walker, increased sales by 4.2% during the same period while Farm Foods posted an 11.7% rise in takings.

Figures from retail industry researcher Kantar Worldpanel showed the sector as a whole saw a sharp dip in average sales growth from 3.9% to 2.6%.

There was little change among the top four supermarkets with only Morrisons marginally increasing its share to 12.2% compared with 12.1% a year earlier. Tesco and Asda saw slight declines, to 30.2% and 17% respectively, while Sainsbury’s held firm with a 16.3% share.

Discount chain Aldi lifted its market share to 3.1% from 2.8%, while Iceland was up to 1.9% from 1.8% and Farm Foods held at 0.6%.

Kantar said customers were turning to cheaper outlets in search of better value-for-money products.

Edward Garner, communications director at Kantar Worldpanel, said: “While there are no signs yet of the explosive growth in economy own-label ranges that we saw in 2008, there are now clear indications that value-for-money is driving retailer performance.”