Tesco pre-tax profits fall 6.9% to £3.05bn

Tesco's chief executive Philip Clarke has spoken to ITV News' Business Editor Joel Hills** and denied claims that Tesco is an "empire in decline" he says the company is facing the challenges of one of the world's most competitive markets and is "on the way back."

More: Tesco pre-tax profits fall 6.9% to £3.05bn

Brand expert Stephen Cheliotis has said supermarket giant Tesco needs to "win us over by price" after it announced a fall in like-for-like sales.

Mr Cheliotis said: "A fierce market is great for us. They'll be fighting for our wallet and they need to fight for our wallet."

"Ultimately they need to win us over by price as well so this is good for us because it should mean a big squeeze on prices," he added.

Tesco's chief executive Philip Clarke has said that the supermarket's results reflect "challenges" in a rapidly changing trading environment.

• Read: Tesco annual results

Tesco announces like-for-like sales excluding VAT and petrol for the year are down 1.4%.

The underlying pre-tax profits at Britain's biggest supermarket Tesco fell 6.9% to £3.05 billion.