Investors dump Tesco as ‘bumpy ride’ looms

Tesco has written £4.7 billion off the value of its property portfolio
Tesco has written £4.7 billion off the value of its property portfolio
STEFAN WERMUTH/REUTERS

Hopes of a swift recovery at Tesco were dashed by a “reality check” yesterday as the struggling supermarket chain warned of a long, slow rebuilding task after reporting the biggest loss recorded by a British retailer.

Tesco’s shares dropped by 5.2 per cent to 222¾p as the company revealed that it had gone £6.38 billion into the red for the year to February. Anxiety in the City was compounded by an admission from the company that it is unlikely to make much money out of its British supermarkets this year.

Admitting Tesco’s predicament was worse than he had initially suspected, Dave Lewis, the chief executive, said: “I joined Tesco knowing there was a challenge. Has the challenge manifested itself in a different way to what