people are no longer going to aldi just to search for price. they're actually discovering they can effectively do a full shop at a cheaper price. it's no longer uncool to go to these places in this austerity. therefore, as a result, i think winning those consumers back will be very hard. and it will require a lot of money and margin pressure. >> reporter: this as discount and premium supermarkets are continuing to increase market share at the expense of the big four. new research from a panel shows aldi posting record gains in market share over the year, up by more than 30%. aldi started in 1946 in germany when brothers carl and theo took over their mother's grocery store, however, the business was divided in 1960 when the famously reclusive brothers split over whether to sell cigarettes. the stores have become household names in europe and the u.s. and are now trying to get their foot in the door in the uk. aldi and lidl may have at one time only appealed to cash strap ed families. this is 13 items for just over 8 pounds. these low-cost player

they are losing market share to the likes of aldi and their prices aren't managing to entice people to come in. >> i spoke to an investor who said yes, we are disappointed. it, tesco isabout still the third-largest supermarket retailer in the world. >> it is. it is huge. the amount of profit it does bring in, still in excess of 3 billion pounds. the strategy is taking time and it is more of the same. we are hearing from fellow car that he is going to be cutting prices. they are already cutting prices on standard goods. it is not reaping dividends quite yet. they are focusing on line still in a big way. this is a company that has dominated online buying in the u.k. more convenience stores, 150 of them. they are also revamping tesco extra. they are getting artisan bakeries, coffee shops. >> the problem is, they don't have a lot of time. the music is beginning to change. the chairman is said to be watching the situation carefully. you have already had others departing because they are concerned about his strategy. you have to wonder how much time he is going to be given to get this right.

price cuts on basic food products in an effort to take back market share from discou discounters like aldind lidle. tesco is slashing the cost of its online delivery services as well. basically scrambled eggs are looking cheaper. >> it's interesting. we had the news earlier this month about tesco's pushing f & f, their clothing brand in the u.s. remember, tesco is the poster child for uk failures in terms of retail in the u.s. market. british companies haven't traditionally done well in america. i think what abf are going to pry with primark is possibly interesting, primark has been not just the driver of growth in abf. the entire jewel in the crown. >> it fits with the u.s. consumption model, this stuff is cheap. you can take out bags and bags of clothing and other apparel and it's just basic consumerism, which appeals to the states. they different i thought to f & f, which i didn't think was cheap enough when converted to u.s. dollars. >> both of them we're seeing, as we've talked about before, the high street is dislocating in terms of really value and where primark sits, where h & m si