Marks & Spencer’s share of the food market has fallen again, despite heavy discounting and the decision to sell branded products for the first time in 50 years.

Food sales at the high street retailer fell by 1.4 per cent in the four weeks to August 10, according to figures from TNS, the market research consultant. Over the same period, Aldi lifted sales by nearly 23 per cent as the credit crunch continued to turn shoppers into bargain-hunters.

Asda was the fastest-growing super-market chain, with sales growth of 9.5 per cent.

Analysts said that the figures reflected the size of the task confronting John Dixon, the new M&S director of food.

Nick Bubb, an analyst for Pali International, said he believed that on a like-for-like basis, which strips out the benefit of new store space, food sales at M&S are running nearly 8 per cent lower than in the same period a year ago.

M&S has been running a series of “Dine in for two for £10” promotions and in July began to sell more than 300 branded products, such as Marmite, in 19 stores in the North East.

Sir Stuart Rose, the executive chairman, dismissed Steven Esom, the former head of food, last month, claiming that the pace of change in the food business had been too slow.

TNS said that food price inflation across the market was running at 6.8 per cent. It claimed that Aldi’s success was “entirely driven by new stores and new shoppers”.

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