Tesco slump in profits

Supermarket giant suffers its worst Christmas yet

Tesco has confirmed it has suffered a loss in the six weeks leading up to January 7th 2012.

Forecasts projected a drop of 0.8% but figures released this morning actually told a different story. The retail leviathan saw a slump of 2.3%. CEO Philip Clarke called this a "disappointing" performance.

When the FTSE opened this morning shares were down 4.17% to 289.2p. Meanwhile, Argos has reported significant losses too.

Home Retail Group, which also owns Homebase, said like-for-like sales at Argos fell by 8.8% in the 18 weeks to December 31, with the majority of the decline due to poor demand for video gaming and audio products.

Chief executive Terry Duddy described the trading environment as both "volatile and demanding" and said the next few months will see cautious trading.

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