ASDA has seen its like-for-like sales dip 1.6 per cent in the third quarter of the year but stated it will not take short-term measures to win more customers.

The supermarket, owned by Walmart, believes it grew its market share in the 13 weeks to the end of September but acknowledged the growing challenge it was seeing from discounters Aldi and Lidl.

Chief executive Andy Clarke admitted the supermarket sector was facing "unprecedented distress" but confirmed that Asda will be sticking to its low pricing strategy without resorting to vouchers and other gimmicks.

He said: "A new reality is upon us and although we were the first to adapt, we need to do everything to remain ahead of our traditional competitors while removing reasons for customers to go to the small discount shops.

"That's the strategy we are on and we need to keep accelerating it."