Tesco, one of the UK's major supermarket chains, has reported a six per cent fall in profits for the past 12 months.
This is the second consecutive year that profits have decreased for the store.
However, this was not quite as significant as industry experts had previously expected, with predictions suggesting that the supermarket's fall in profits would come in at ten per cent.
Group trading annual profits decreased by six per cent to £3.3 billion, while like-for-like sales for the 52-week period ending on February 22nd 2014 fell by 1.4 per cent.
Commenting on the report, chief executive of the supermarket Philip Clarke said that the results reflected "the challenges we face in a trading environment which is changing more rapidly than ever before".
Tesco announced a significant loss of £734 million for its European business, which is thought to be largely due to the eurozone crisis.
In the UK, the supermarket has felt forced to cut prices on basic items such as milk, bread and eggs in a bid to compete against increasingly popular discount retailers like Aldi and Lidl.
Earlier this month, the retailer's finance director Laurie McIlwee resigned due to reported unrest among investors after a 23.5 per cent fall in six-month pre-tax profits was announced last autumn.
It was also recently reported that Tesco has lost a proportion of its market share, along with fellow major British supermarkets Asda, Sainsbury's and Morrisons.
Despite these losses relating to its UK stores, Tesco did experience growth with online grocery sales, as these improved by 11 per cent. In addition to this, sales at its Tesco Express convenience outlets increased by 1.1 per cent.
Mr Clarke added: "We are determined to lead the industry in this period of change. Having strengthened the foundations of our business in the UK, we are now accelerating our growth in new channels and investing in sharper prices, improved quality, stronger ranges and better service."