Tesco's profits to fall for the first time in 20 years

Supermarket giant Tesco will unveil its first fall in profits for nearly 20 years tomorrow as weaker international sales add to its floundering UK performance.

Tesco is forecast by broker Shore Capital to report pre-tax profits of £1.5 billion for the six months to August 25, a drop of 12% on the same half last year.

This will be the first fall since 1994.

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Mixed results for supermarkets

Supermarket giant Tesco has reported a 12% drop in group pre-tax profits to £1.7 billion in the six months to August 25. However Sainsbury's has reported strong sales for the second quarter of the year, with total sales up 4.3 per cent.