UK: Tesco reports 6.4 billion pounds loss, the worst in its 96-year history | Progresiv
Britain’s biggest retailer Tesco posted the worst annual loss in its 96-year history after writing down the value of its stores by 4.7 billion pounds. Also hurt by an accounting scandal and sliding sales due to pressure from discounters and a brutal price war the supermarket made a statutory pre-tax loss of 6.38 billion pounds (8.9 billion euros) in the year to February 28th. 
The grocer, which was recently overtaken by Supervalu as the largest supermarket in Ireland, announced a 6.3 per cent fall in sales here over this period, with full-year sales falling to 2.6 billion pounds.
The decline was strongest in the second quarter of its financial year, when sales fell by 7.3 per cent. On a like-for-like basis, Irish sales fell by 6.4 per cent, but new store sales rose by 1.4 per cent.
Tesco closed 2 stores in Ireland during the year, and opened five, bringing its total up to 149 as of year-end.
Tesco’s trading profit was 1.4 billion pounds, in line with company guidance but less than half of the 3.3 billion pounds made the year before and a third straight year of decline. The firm also revealed it had net debt of 8.5 billion pounds and a net pension deficit of 3.9 billion pounds. The results highlight the work needed to mend Tesco’s finances under new boss Dave Lewis. (www.irishtimes.com)
