The Co-op's chief executive admits to a "diasastrous" year for the group, and will need to decide how to reform the sprawling group.
For the first time in nearly six years, average wages are rising faster than inflation.
The embattled chief executive brushed off speculation about his future despite no sign that his £1 billion plans are bearing fruit.
Tesco's chief executive Philip Clarke has spoken to ITV News' Business Editor Joel Hills** and denied claims that Tesco is an "empire in decline" he says the company is facing the challenges of one of the world's most competitive markets and is "on the way back."
Business Secretary Vince Cable has responded to today's wages and unemployment figures by saying: "Throughout the economic crisis, and now in the recovery, our labour market has shown itself to be resilient and flexible".
"People are feeling the benefits of recovery. We now need to focus on increasing job security and confidence.
"This is why I am addressing issues such as zero-hours contracts and restoring the real value of the national minimum wage.
"Together with the tax and benefits changes we have made, this will mean more money in people's pockets at the end of each month."
Brand expert Stephen Cheliotis has said supermarket giant Tesco needs to "win us over by price" after it announced a fall in like-for-like sales.
Mr Cheliotis said: "A fierce market is great for us. They'll be fighting for our wallet and they need to fight for our wallet."
"Ultimately they need to win us over by price as well so this is good for us because it should mean a big squeeze on prices," he added.
Rachel Reeves MP, Labour’s shadow work and pensions secretary, has responded to wages rising above the rate of inflation this morning’s by saying:
“At long last earnings are finally rising faster than CPI inflation when bonuses are included, but after four years when prices have risen faster than wages there is a huge amount of lost ground to catch up."
"Working people are now over £1600 a year worse off than when David Cameron came to office, most people are not feeling any recovery and the link between the wealth of the nation and family finances remains broken".
Starbucks' decision to move its European headquarters from the Netherlands to London is a "ringing endorsement" of the capital's business environment, according to the chief executive of the London Chamber of Commerce and Industry, Colin Stanbridge.
This very positive move by Starbucks greatly reinforces London as a key global centre for business and a highly desirable location for firms to base their operations.
Creating the right environment for businesses to flourish is essential to London competing at an international level and we are delighted that Starbucks has given the capital a ringing endorsement.
Minister for Employment Esther McVey has praised the news of average earnings rising above the rate of inflation for the first time in six years.
She said: "More young people are in work, more women are in work, wages are going up, and more and more businesses are hiring - and it's a credit to them that Britain is working again."
The unemployment rate was 6.9%, down from 7.1% for September to November 2013 and from 7.9% for a year earlier.
Unemployment fell by 77,000 between December and February to 2.24 million, official figures showed today.
The number of people claiming Jobseeker's Allowance last month also fell by 30,400 to 1.14 million, said the Office for National Statistics.
Average earnings increased by 1.7% in the year to February, above the CPI inflation rate of 1.6%.
Average Weekly Earnings in Dec-Feb up 1.7% on same time last year http://t.co/sFvlwU6XkF
The increase in earnings will be the first time in six years that the average wage has risen above the consumer price index (CPI), which stands at 1.6% for 2014.
Coffee chain Starbucks says it will "pay more tax in the UK" in the future after opting to move its European headquarters from the Netherlands to London.
The company said the move would make it "better able to oversee the UK market".
Starbucks has come under scrutiny over its tax affairs in the past, with the company telling a parliamentary committee in 2012 that it had not made a taxable profit for 14 of the 15 years it had been operating in the UK.