Asda has overtaken J Sainsbury to become Britain's second-biggest supermarket in food and drink for the first time as it continues to cash in on the credit crunch.

New industry figures yesterday revealed that Asda's sales of food and drink in the four weeks to September 7 were up 10.4 per cent on the same period last year, compared with 6.8 per cent at Sainsbury's.

It means that Asda's market share in Sainsbury's strongest category has moved to 16.2 per cent, marginally above its fierce rival, on 16.1 per cent.

The milestone will be another blow to Justin King, Sainsbury's chief executive, who this year predicted that his business would “thrive” in the tougher economic climate.

Including non-food ranges such as electricals, DVDs, health and beauty and clothing, Asda became the nation's second-biggest supermarket five years ago, behind Tesco.

Until now Sainsbury's has countered claims of Asda's success by pointing out that it was stronger in food and drink, thanks to ranges such as Taste the Difference.

A Sainsbury's spokesman declined to comment yesterday.

The industry figures from TNS, the market research company, again illustrate how discounters are benefiting from the consumer downturn. Including non-food, Aldi, the German-owned discount chain, registered sales growth of 23 per cent in the four weeks to September 7, compared with 2.5 per cent at Waitrose and a fall of 1.8 per cent at Marks & Spencer.

Asda's sales growth was 9.6 per cent, including non-food, Morrison was 9.7 per cent, while Tesco reported a 6.7 per cent jump and Sainsbury's one of 5.3 per cent. Asda's total market share is a record 17.3 per cent.

Ed Garner, director of research for TNS Worldpanel, said: “Once again, younger, larger families are responding to the squeeze on housekeeping by driving discounters' turnover up.” He said that much of the sales growth, which is registered in revenue terms, had been driven by food price inflation, which TNS estimates to have been 9 per cent. Actual sales volumes were largely flat year-on-year.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive