Tesco has reported losses of £6.4bn, the worst result in its 96-year history, as the company undergoes a restructure.
Chief executive Dave Lewis said the results for the year to 28 February reflected "a deterioration in the market and, more significantly, an erosion of our competitiveness over recent years."
The supermarket chain has been hurt by a price war sparked by discount groups Aldi and Lidl, forcing it to write down the value of its business by £7bn.
The last financial year also saw Tesco embroiled in an accounting scandal and suffering falling sales and profit warnings, costing Lewis’ predecessor, Philip Clarke, his job.
In January, the chain said it would close its head office and 43 unprofitable stores in a drastic bid to revive its fortunes.
Lewis said in a statement today that his company sought to “draw a line under the past” and is beginning to see early “encouraging signs” of recovery.
UK like-for-like sales volumes rose for first time in over four years in Q4, driven by better availability, service and pricing, he said.
“We have seen a steady increase in footfall, transactions and, most significantly, volumes. More customers are buying more things at Tesco,” added Lewis.
“We are making deep changes to the way we organise and run our business, with a simpler, more agile office team, more colleagues serving customers and a new approach to the way we work with suppliers. I do not underestimate how difficult some of these changes have been for the team and I thank everyone for their professionalism and contribution at this time of great change.”