The supermarket giant said pre-tax profits were down 51 percent to £1.96 billion, while post-tax profits including the cost of its £1.2 billion US exit were £120 million, marking a decrease of 95.7 percent.
The company confirmed that it would be backing out of the US after its investment in 190 Fresh and Easy stores failed to make it a profit.
In Blighty the company has also announced a property write down of £804 million. This was as a result of a review by the company, which uncovered more than 100 sites, scooped up five years ago for potential stores, now lying dormant.
In a blog post, head honcho Philip Clarke said: “Much of this property was bought more than five years ago, some more than 10 years ago.
“That is before the 2008 financial crisis, before the iPhone, social media, tablet computers, before we knew how profoundly technology would change both how we and our customers live and shop.
“Technology has changed much that we all took for granted and it is still changing. The last five years have shown that change in retail can be disruptive and come in sharp steps, not a steady trend. We must anticipate change and act decisively so we looked hard at the land we own and conclude that although we have a strong and attractive network of stores, we will never develop some of this land, mostly the very large mixed-use developments.”
The past three months have also not been favourable to the company, with Tesco claiming its sales, not including petrol, only rose by 0.5 percent. This was a decrease from the growth the company faced in six weeks to 5 January when the company marked a 1.8 percent rise as a result of Christmas shopping.