Lidl and Aldi were the fastest-growing retailers respectively for the 12 weeks to 28 January 2007. Aldi's share grew from 2.3% to 2.5% while Lidl climbed from 2% to 2.2%.
In contrast Kwik Save could only muster a 0.2% share. It had a 1.5% share in the same period last year.
"The effective collapse of Kwik Save is fuelling the strong performance seen by Aldi and Lidl," said TNS Worldpanel director of research Edward Garner.
Tesco maintained its dominant position with a 31.5% sector share compared with 30.6% for the 12 weeks to 29 January 2006.
However, both Asda and Sainsbury's also strengthened their positions.
Sainsbury's has once again narrowed the gap between itself and Asda, but Asda remains in second place with 16.8%, up from 16.6% the previous year. Sainsbury's has taken a 16.5% chunk of the market compared with 16.2% last year.
Morrisons' share remained stable at 11% while Waitrose climbed to 3.9% from 3.7% in 2006.
The total independent market share fell from 2.8% to 2.6%, and the total Co-op's share fell by 0.1% to 4.6%.