Market researcher Kantar Worldpanel said sales at Walmart's Asda, which has agreed to be taken over by Sainsbury's, rose 0.7 percent in the 12 weeks to Dec. 30. Market leader Tesco sales rose 0.6 percent, whiles sales at No. 4 Morrisons edged up 0.1 percent. Sales at Sainsbury's fell 0.4 percent.

Sales growth at Aldi and Lidl was 10.4 and 9.4 percent respectively, taking their combined market share to 12.8 percent, the Kantar data, which broadly mirrored data from rival researcher Nielsen, showed.

(Reporting by James Davey; editing by Kate Holton)