Tesco shares fall on first profit slide since 1994

<p>Tesco shares have slipped as the supermarket reports its first profit fall since 1994.</p>

Tesco's share price on the London Stock Exchange has slipped after the supermarket giant posted its first fall in profits since 1994.

Pre-tax profits for the six months to August 25th came in a £1.7 billion – which is an 11.6 per cent drop compared to the same time last year.

This follows news that rival store Sainsbury's reported a 1.9 per cent growth in three-month sales.

Tesco's profit slump is due to the franchise spending £1 billion on an investment programme to improve its UK supermarkets, which were announced in April by chief executive Philip Clarke.

The boss said this initiative has helped create jobs, putting 8,000 additional staff in existing stores at a cost of £200 million annually.

At 09:50 BST in London, Tesco's share price retreated by 1.3 per cent to a price of 332.30p, while Sainsbury's saw its value appreciate by 0.5 per cent to 348.80p.

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