The battle of the supermarkets has intensified after a bumper Christmas saw Sainsbury's take its largest share of the market for two years and close the gap on Asda.

According to market research group TNS Superpanel, Sainsbury's controlled 16.2 per cent of the grocery market in the 12 weeks to New Year's

Day compared with 15.9 per cent a year ago.

Its sales growth of six per cent was in stark contrast with Asda, whose share of the market over the festive season fell from 17.1 per cent last year to 16.7 per cent.

But both lagged behind Tesco, which continued to dominate with a share of 30.5 per cent.