{"id":4299,"date":"2015-04-23T13:13:04","date_gmt":"2015-04-23T13:13:04","guid":{"rendered":"http:\/\/english.thesunrisetoday.com\/?p=4299"},"modified":"2015-04-23T16:26:03","modified_gmt":"2015-04-23T16:26:03","slug":"tesco-reports-8-5bn-loss","status":"publish","type":"post","link":"https:\/\/english.thesunrisetoday.com\/index.php\/tesco-reports-8-5bn-loss\/","title":{"rendered":"Tesco reports $8.5bn loss"},"content":{"rendered":"

\"Tesco\"<\/a>Tesco, Britain\u2019s biggest retailer, posted a record full-year loss of 5.7 billion pounds ($8.5 billion) Wednesday as deteriorating market conditions forced it to write down the value of supermarkets and other assets.
\nThe loss marks another unfortunate milestone for Tesco, which has been dogged by an accounting scandal and a series of profit warnings that led to the departure of previous CEO Philip Clarke.
\nIt also shows the impact of a brutal supermarket price war, as discount supermarket chains eat into the market share of a company that once dominated the market.
\nThe company said Wednesday it took 7 billion pounds of one-time charges in the 12 months through February, including 4.7 billion pounds for the reduced value of fixed assets.
\nThe net loss compares with net income of 974 million pounds in the previous year.
\nThe results \u201creflect a deterioration in the market and, more significantly, an erosion of our competitiveness over recent years,\u201d CEO Dave Lewis said in a statement.
\n\u201cWe have faced into this reality, sought to draw a line under the past and begun to rebuild.\u201d
\nRevenue for the period fell 2 percent to 62.3 billion pounds.
\n\u201cLewis can only hope that Tesco\u2019s night is darkest just before dawn,\u201d said Paul Thomas, an analyst at Retail Remedy.
\nWhile the market is \u201cstill challenging,\u201d the company plans to cut costs, lower prices and improve relations with suppliers, Tesco said.
\nTesco closed 43 unprofitable stores this month, has reduced costs by 250 million pounds and has identified an additional 150 million pounds of savings, the company said.
\nTesco shares rose 0.6 percent to 236.2 pence in early trading on the London Stock Exchange.
\nThe company said trading profit, which excludes property-related transactions, restructuring costs and other one-time items, fell 58 percent to 1.39 billion pounds, in line with market expectations.<\/p>\n

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