By Ian Walker 
 

LONDON--The combined market shares of German retailers Aldi and Lidl rose to a record 8.6% in the latest 12 week data according to a survey Tuesday, with Aldi recording the fastest growing sales of any retailer at 22.3%, followed closely by Lidl with 18.3% sales growth.

Up-market retailer Waitrose, also continued to gain market share, extending an unbroken pattern of growth dating back to February 2009, according to Kantar, which monitors the household grocery purchasing habits of 25,000 demographically representative households in the U.K.

In the 12 weeks ended Dec. 7, Waitrose market share rose to 5%, from 4.7% in the 12 weeks ended Dec. 8, 2013.

At the other end of the scale, the top four supermarkets saw their market shares fall.

For the 12 weeks ended Dec. 8 Tesco PLC's (TSCO.LN) market share fell to 29.1% from 29.9%, while J. Sainsbury PLC (SBRY.LN) fell to 16.5% from 16.8%. Wm Morrisons Supermarkets PLC (MRW.LN) market share fell to 11.2% from 11.56, while Asda, a subsidiary of Wal-Mart Stores Inc. (WMT), fell to 16.7% from 16.9%.

Individually, Aldi's market share has risen to 4.9% from 4%, while Lidl's market share has risen to 3.7% from 3.1%.

"Britain's supermarket price war is ramping up ahead of the all-important Christmas period. Retailers are selling more items on promotion, leading to like-for-like prices falling by 0.7% compared with this time last year," Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel said.

"Cheaper groceries are an early Christmas present for shoppers, saving them 182 million pounds ($285.8 million) in the past 12 weeks alone but this puts pressure on the supermarkets. We expect grocery deflation to continue well into 2015 as the price war rumbles on," Mr. McKevitt added.

Write to Ian Walker at ian.walker@wsj.com

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