MORE FINANCIAL WOES FOR TESCO

Tesco has reported its first fall in profits for two decades.

Tesco had previously reported six quarters of falling underlying sales and had been accused by some analysts of buying customers with a campaign of money-off coupons but Tesco Chief, Philip Clarke insisted the level of discounts offered during the half had been no higher than the equivalent period a year ago.

The performance of the domestic chain is key to the group`s success as it generates more than two-thirds of group profits. Group trading profit dropped 10.5% to