The number of customers regularly buying non-food items such as mobile phones from supermarkets has risen 40% in the past five years.

Figures from research agency Verdict revealed that 28 million shoppers are regularly buying clothes, mobile phones and furniture from grocery retailers.

Supermarkets first entered the mobile industry around six years ago.

Tesco currently has around two million customers, but competition is fierce with Asda who has around 100,000 customers aiming to reach one million over the next few years.

Supermarkets have already drawn up the battle lines for a prepay war this Christmas which looks to be centred on five-megapixel cameras in the £80-£100 price bracket.

This week hundreds of small shopkeepers marched on Parliament protesting at what they believe to be the Government's neglect of the high street.