The biggest British Supermarket chain, Tesco has reported a 6% fall in annual profit to £3.3bn. This is the second time in a row that the Supermarket has suffered falling profits.
The retail giant also announced that like-for-like sales, excluding fuel and VAT, fell 3% in the three months to the end of February 2014.
The financial results, however, do not include figures for the company`s banking business which is reported separately.
According to the findings of a retail market analysis conducted by Kantar Worldpanel, Tesco’s market share was at its lowest level of 28.6% since 2004. The Supermarket is losing market share largely to discount rivals, Lidl and Aldi.
In spite of the fall, the global retail giant remains the third biggest retailer in the world.
The company`s chief executive, Mr. Philip Clarke said: “We are transforming Tesco through a relentless focus on providing the most compelling offer for our customers.
“Our results today reflect the challenges we face in a trading environment which is changing more rapidly than ever before.”
The defiant Mr. Clarke added: “We are determined to lead the industry in this period of change.”
The sales drop in the last three months was the biggest quarterly drop recorded during Mr. Clarke’s three-year tenure.
The company said it would put customers “at the heart” of what it does in this “new era of retail”.
A spokesman for Tesco admitted: “Our performance in the year was not where we had planned it to be.”
Tesco also announced that the company had incurred a £734m loss of value in its European business, which it said was largely due to the Eurozone crisis.
Its European group trading profit fell by 28% to £238m as sales in the Czech Republic, Hungary, Poland, Slovakia, and Turkey, as well as Ireland, all fell.
The company`s Asia Group also saw profits fall by 5.6% to £692m.
Tesco shares were up more than 3% in early trading on Wednesday.