* UK grocery market sales growth 1.7 pct in 12 weeks to May25 * Lowest growth for the overall market for 11 years * Tesco sales down 3.1 pct, Morrisons down 3.9 pct LONDON, June 3 (Reuters) - Sales at Britain's biggest grocerTesco and at No.4 player Morrisons continued toslide over the past 12 weeks, while Asda and Sainsbury's achieved growth in a weak overall market, industry datashowed on Tuesday. The data from market researcher Kantar Worldpanel for the 12weeks to May 25 showed that growth for the overall grocerymarket slowed to 1.7 percent - the lowest level in 11 years. British consumers are shopping around to save money and arewasting less, shying away from big weekly shops and buyinglittle and often in local convenience stores or online. Tesco, Asda and Morrisons have all pledged to cut prices,while Sainsbury's has vowed to remain competitive, raisinganalysts' concerns about a possible price war hitting earningsacross the industry. Kantar said price cuts had also led to another drop in thelevel of grocery price inflation to 1.2 percent - the lowestlevel since May 2010. Tesco's sales fell 3.1 percent year on year, giving it amarket share of 29 percent, down from 30.5 percent, while salesat Morrisons were down 3.9 percent, with its market sharefalling to 10.9 percent from 11.6 percent a year ago. Tesco will publish first-quarter results on Wednesday, withanalysts forecasting a sales fall of between 3.5 percent and 4.1percent at stores open for more than a year. Shares in Tesco, Morrisons and Sainsbury's were all down byabout 1 percent in morning trade. Asda, the British arm of Wal-Mart, surpassed itsrivals with market-beating sales growth of 2.4 percent. It wasalso the only leading grocer to increase market share, edging upto 17.1 percent from 17 percent a year ago. Sainsbury's sales grew 0.9 percent, but its market shareslipped to 16.5 percent from 16.7 percent. BIG FOUR SQUEEZED All of Britain's big four grocers are being squeezed betweenhard discounters Aldi and Lidl andWaitrose and Marks & Spencer at the premiumend of the sector. Kantar said Lidl achieved a record share of 3.6 percent inthe 12-week period and its highest ever year-on-year salesgrowth, at 22.7 percent. Similarly, Aldi's sales were up by 35.9percent and the company retained the record 4.7 percent marketshare it reached in the previous 12-week period. Sales at Waitrose grew by 6.1 percent and it maintained itsrecord market share of 5.1 percent. Sales growth and market share (percent) - Kantar Worldpanel Market Market Sales, share, share, pct 12wks to 12wks to change May 25, May 26, 2014 2013 Tesco 29.0 30.5 -3.1 Asda 17.1 17.0 2.4 Sainsbury 16.5 16.7 0.9 Morrison 10.9 11.6 -3.9 Co-operati 6.0 6.2 -0.7 ve Waitrose 5.1 4.9 6.1 Aldi 4.7 3.5 35.9 Lidl 3.6 3.0 22.7 Iceland 2.0 2.0 1.8 (Reporting by James Davey and Neil Maidment; Editing by DavidGoodman)
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