LONDON (Reuters) - Tesco , Britain's biggest retailer, lost grocery market share in the run-up to Christmas as rivals fought back against its price-cutting campaign and cash-strapped shoppers flocked to discount stores, according to data published on Tuesday.
Market researcher Kantar Worldpanel said grocery sales rose 4.8 percent in the 12 weeks to December 25.
That lagged a 5.9 percent increase in food price inflation, suggesting Britons are cutting back on the number of groceries they buy and/or switching to cheaper alternatives.
Many shoppers are curbing spending as disposable incomes are squeezed by rising prices, muted wages growth and government austerity measures.
Tesco, which reports Christmas sales figures on Thursday, lagged the broader grocery market with sales growth of 3.3 percent over the 12 week period, Kantar said.

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