Sales at Safeway are continuing to slip, as the latest data for the grocery sector shows a continuing decline in market share for the supermarket.

With Christmas Day falling mid-week it is difficult for analysts to predict how the festive season will affect trading. But by focussing on data from Taylor Nelson Sofres (TNS), which covers the four weeks to December 8, analysts say growth across the food retail sector as a whole has remained stable at five per cent.

However, at Safeway sales have continued to fall. Although the rate of decline has slowed, the UK's number four supermarket is still losing market share to rival Tesco – which shows the biggest year-on-year gains in both market share and supermarket sales growth.

Safeway suffered the biggest fall of blue-chip grocers, off 4.5p at 200p, with Tesco 0.5p better at 188p. Figures for Sainsbury's are also impressive, with TNS figures showing a rise of 1.5p to 270p for company shares.