Tesco Posts Record Loss

Major UK retailer Tesco reported a record £6.3 billion ($9.4 billion) pre-tax loss for last year, having lost ground to cheaper rivals such as Aldi and Lidl.

Tesco swung to a net loss for the year of £5.7 billion ($8.5 billion) from a net profit in the previous year of £970 million ($1.4 billion), while turnover dropped 3% to £69.6 billion ($104.6 billion). The company made a trading profit, but wrote down the value of its stores by £6 billion. CEO Dave Lewis said it was a very difficult year for Tesco and that the results reflected a deterioration in the market and, more significantly, an erosion of competitiveness over recent years. He added: “The market is still challenging and we are not expecting any let up in the months ahead. When you add to this the fundamental changes we are making to our business and our offer, it is likely to lead to an increased level of volatility in short-term performance”.