Tesco has reported a record pre-tax loss of £6.4bn for the year to the end of February - the biggest in its 96-year history and the worst ever recorded by a British retailer.
The heavy loss compares to pre-tax profits of £2.3bn for the same period last year and is largely due to a £4.7bn reduction in the value of its property holdings, as part of a one-off charge of £7bn.
In addition, overseas trading conditions over the past 12 months are described as “disappointing”, particularly in Korea and Europe.
Annual group trading profit fell by almost 60% to £1.4bn, which Tesco says is in line with expectations.
The company has already announced the closure of some unprofitable stores and has mothballed plans to open a number of new ones.
Chief executive Dave Lewis said: “It has been a very difficult year for Tesco. The results we have published today reflect a deterioration in the market and, more significantly, an erosion of our competitiveness over recent years.
“We have faced into this reality, sought to draw a line under the past and begun to rebuild, and already we are beginning to see early encouraging signs from what we’ve done so far.”
Mr Lewis added: “The market is still challenging and we are not expecting any let up in the months ahead.”
Tesco is still being investigated by the Serious Fraud Office after overstating profits by £263m last year.
