Tesco: Still dropping like a rubber brick in the deep end
Chief Executive Phil Clarke tried to rectify the downward trend by investing £1 billion on more staff, new food ranges, new stores and lower prices. However, it hasn't worked.
"What we're in to is long term sustainable growth. It's going to ebb and flow over a quarter but the direction of travel is the right direction," said Clarke.
"These results go to show that, even with 1 billion pounds to throw at it, there are no guarantees," said John Ibbotson, director of retail consultants Retail Vision.
This morning, Tesco shares were down 3.2 percent at 353 pence, among the largest drops by a UK blue-chip stock.
Expect a raft of new advertisements on your television soon, as that's what always happens when Tesco finds itself in trouble.