The research, by Verdict Research, found that Asda's clothing range George was ahead of high street retailers Primark and New Look. Tesco came in fourth with an 11% share of the market.
Maureen Hinton, author of the report, said: "The budget shops are an accepted element of clothing retail now. There is no longer a stigma attached to shopping for cheap clothes. But without a few big operators such as Tesco, Asda and Primark the market would be slipping towards negative territory as it approaches saturation.”