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Tesco reports record £6.38bn annual loss

Supermarket giant Tesco has reported a bottom-line loss of £6.38 billion for the year to February 28, the biggest annual loss in its history.

Chief executive Dave Lewis - who has instigated a turnaround plan at the supermarket since taking over in August - said Tesco had endured a "very difficult year" but was seeking to "draw a line under the past".

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Tesco: What drove the supermarket's record loss

Tesco's £6.38 billion losses were driven by £7 billion in one-off charges.

Among the major contributors to that figure were:

  • £3.8 billion: A review of its store portfolio in light of industry conditions and declining profits
  • £925 million: A write-down in the value of work-in-progress, after decision to axe 39 new stores
  • £270 million: Yearly contribution agreed toward pension fund after valuation revealed £2.8 billion deficit
  • £416 million in restructuring costs

Tesco is undergoing a turnaround plan under new chief executive Dave Lewis, who took over from Phillip Clarke in August last year.

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