Discount retailer Netto has been named the UK's fastest-growing supermarket, boosting its market share by more than 11% in the past year, well ahead of the industry average growth of 5%.

Although Netto claims just 0.8% of the UK grocery market, according to the latest Nielsen figures, it is growing quickly and should continue to do so with plans to open at least 20 new stores in 2008.

"Consumers want the best value for money on their weekly shop," said Netto UK MD Richard Lancaster. "Budgets are certainly tighter than they were a year ago but shoppers are reluctant to compromise on quality."

The chain is growing through a mixture of new stores and strong like-for-like sales, helped by picking up new customers following the demise of Kwik Save. It is also likely that the credit crunch is sending more customers to value retailers as belts tighten, he said.

"There is a body of opinion that 2008 will be the year of the value retailer and this may prove to be correct," says Lancaster. "But I am firmly of the opinion that if we do a great job in serving our customers' needs with great value products then we will be successful, regardless of the wider economic environment."

Netto is also launching new premium products under the Simply Irresistible label this year, in response to customer research indicating strong demand for premium goods. "We are aiming to continually raise the bar across every area of our business to better service our customers' needs," added Lancaster.