THE challenge facing Tesco's new-broom chief executive Philip Clarke was starkly outlined by figures showing that its share of the UK grocery market has fallen to a near seven-year low.

The chain remains by some distance the UK's largest supermarket chain but its market share has dropped to 29.7%, the lowest level since May 2005.

Mr Clarke, who succeeded Sir Terry Leahy a year ago, has pledged to put more staff on the shop floor and move away from enormous stores.

Tesco posted its first profit warning in decades in January after disappointing Christmas sales.