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."
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.
Tesco's chief executive Philip Clarke has said that the supermarket's results reflect "challenges" in a rapidly changing trading environment.
– Philip Clarke, chief executive
Our results today reflect the challenges we face in a trading environment which is changing more rapidly than ever before. 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.
Tesco announces like-for-like sales excluding VAT and petrol for the year are down 1.4%.
The underlying pre-tax profits at Britain's biggest supermarket Tesco fell 6.9% to £3.05 billion.