Every little hurts as Tesco profit plunges

Supermarket giant Tesco has reported its biggest fall in annual profits in two decades.

The British retailer says pre-tax profits are down by more than half to under 2 billion pounds.

The chain has also decided to pull out of the American grocery market, a move that will cost the giant over 1.2 billion pounds.

Financial Analyst Louise Cooper says many UK retailers struggle in the US market.

"Virtually every UK retailer when they've gone to the States has come a cropper - it's a different market" she said.

"The problem with retailing is it's very national-based, and there's a tiny handful of retailers that can actually take their offering across borders - and the UK retailers have just never done it" she added.