Aldi and Lidl dramatically increased their market share over the Christmas period as £1 in every £14 in grocery spending went to the discount retailers.
The two brands took a 7.1% share over the 12 weeks to January 5 compared to 5.8% the year before, with Aldi increasing total sales to more than £1bn.
Data from Kantar Worldpanel confirmed 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 saw it miss out on a web ordering surge that propped up its rivals.
Total grocery sales were up 2.9% but Waitrose again showed its success in luring higher-spending shoppers by beating the figure with a 6.4% improvement and taking its market share 0.1% higher to 4.8%.