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(Fixes typo in second bullet point from Kantor to Kantar)
* Third-fastest growing grocer behind Aldi and Lidl
* Waitrose market share now 5 pct -Kantar Worldpanel
* Showcasing new store concepts Friday
LONDON, May 2 (Reuters) - British grocer Waitrose liftedsales by 6.5 percent in the first quarter, it said on Friday,outperforming rivals and delivering a record share of anincreasingly competitive market.
Britain's grocery market is polarising, with the big four -market leader Tesco, Sainsbury's, Wal-Mart's Asda and Morrisons - being squeezed betweenGerman discounters Aldi and Lidl andupmarket players Waitrose and Marks & Spencer.
Employee-owned Waitrose, which is part of the John LewisPartnership, is growing faster than all but Aldi andLidl. Its more than 300 stores have given Waitrose a 5 percentmarket share, researcher Kantar Worldpanel calculates, making itthe country's sixth-largest grocer.
Waitrose has attributed its strong performance to new storeopenings, the success of its "essential" value range and "BrandPrice Match" scheme and the popularity of its myWaitrose loyaltycard, with card holders accounting for 70 percent of sales madein the quarter to April 26. Free delivery for online shoppinghas also proved popular, with online sales leaping 79.4 percent.
The grocer, whose worker co-ownership business model hasbeen lauded by British Prime Minister David Cameron, is alsotrialing bakery and patisserie concepts, juice bars, deli andwine-grazing areas.
All these concepts are being showcased together for thefirst time in Waitrose's Swindon branch, which opened last monthand will on Friday be subject to an analyst and media visithosted by Managing Director Mark Price.
Waitrose's sales in the week to April 26 were 2.1 percentlower than last year, reflecting a shorter trading week becauseof the closure of most shops on Easter Sunday.
Sales at the group's John Lewis department stores rose 6.5percent in the same week, to 72.31 million pounds ($122.16million). The department stores' sales over the two-week Easterperiod were its strongest ever, up 3.9 percent, contributing toa 7.8 percent rise for the quarter. ($1 = 0.5919 British Pounds) (Reporting by James Davey and Neil Maidment; Editing by DavidGoodman)
