Tesco has reported a six per cent fall in group trading.
For the second year in a row, the supermarket has announced falling profits, with this year’s annual profit dipping to £3.3bn.
The chain has also revealed that its like for like sales fell by 1.4 per cent.
However, according to the BBC, the fall is not as bad as some analysts expected, with many predicting a fall of up to ten per cent.
The supermarket has reported strong growth of 11 per cent in its UK online sales.
Tesco is now refreshing 650 stores acros the UK over three years, and plans to focus on a multi-channel offering including a greater focus on online.
Chief executive, Phillip Clarke, said: “Our results today reflect the challenges we face in a trading environment which is changing more rapidly than ever before.
“We are determined to lead the industry in this period of change and we are transforming Tesco through a relentless focus on the most compelling offer for our customers.”