Tesco market share grows for 1st time in 2 years

LONDON (Reuters) - Tesco (TSCO.L), Britain's largest retailer, is growing market share in its core grocery business for the first time in almost two years, market researchers TNS Worldpanel said on Tuesday.

Tesco's sales rose 4.7 percent in the 12 weeks to November 1, ahead of the market average of 4.4 percent, helped by the expansion of its Clubcard loyalty scheme in August, TNS said.

This nudged its market share up to 30.7 percent from 30.6 percent at the same time last year.

Tesco continued to lag its main rivals over the 12-week period. However, analysts said data from the last four weeks put Tesco ahead of J Sainsbury (SBRY.L).

Sales at upmarket chain Waitrose JLP.UL surged 12.3 percent over the 12-week period, its best performance since September 2005 and a sign recessionary pressures are easing.

Growth at Asda, Britain's second-biggest supermarket chain, was 6.6 percent, while third-placed J Sainsbury (SBRY.L) was on 5.6 percent and fourth-placed Wm Morrison Supermarkets (MRW.L) on 8.5 percent.

Grocery price inflation fell for the eighth successive 12-week period to 3.2 percent.

(Reporting by Mark Potter; Editing by David Cowell)