Tesco has revealed a stark 24.5% drop in its profits over the first half of the year to £1.39 billion after suffering from poor overseas trading.
Meanwhile, supermarket rival Sainsbury's has continued to close the gap on Tesco as it posted a 2% increase in sales in the second quarter.
Despite Tesco's dramatic fall in year-on-year profits, the supermarket giant enjoyed improved UK trading as profits rose 1.5% to £1.13 bilion. This comes after the supermarket giant, which was recently caught up in controversy for stocking a "g*y best friend" doll, saw its like-for-like sales excluding petrol remain flat in the second quarter.
Tesco chief executive Philip Clarke said: "Despite continuing challenges, we have made further progress on our strategic priorities.
"Our performance in the UK has strengthened through the half, particularly in our food business, as we have continued our work to Build a Better Tesco," he added.
Meanwhile, supermarket rival Sainsbury's saw like-for-like sales rise throughout the first half to September 28 by 1.4% excluding fuel after its 35th consecutive quarter of sales growth.
Sainsbury's has been the only supermarket of the Big Four to grow its market share. According to the latest Kantar Worldpanel figures, Sainsbury's market share expanded to 16.6% in the 12 weeks to mid-September from 16.4% a year earlier.
Tesco's share of UK grocery spending tumbled from 30.9% to 30.2% in the same period.
Weirdly Successful Businesses
The Pet Rock(01 of08)
Open Image ModalThe Pet Rock:In 1975, Gary Dahl came up with an idea for the ‘perfect pet.’ The Pet Rock never needed to be taken to the vet, walked or fed, and at the same time, it was obedient and loyal. The ‘pet’ came in the form of a rock in a box, along with a manual with instructions on how to care for and train it. It may seem like a joke, but Gary Dahl was the one laughing when his company raked in $15 million in the first six months alone: he sold 1.5 million rocks in its year of existence. (credit:WikiMedia:)
Million Dollar Homepage(02 of08)
Open Image ModalThis ingenious idea came from UK student Alex Tew, who was looking to raise money for his university fees. He created a home page made up of a million pixels and decided to sell each pixel at a price of $1 each, for purchasers to provide their own image. The website itself might look chaotic, but it worked for the Wiltshire based student, landing him with a grand total of $1,037,100 as of January 2006. That should just about see him through university, even with the raised tuition fees. (credit:Flickr:ursonate)
Doggles(03 of08)
Open Image ModalDoggles:When Roni Di Lullo came up with the idea of ‘Doggles,’ protective goggles for dogs, he had no idea it would become as successful as it did. Made originally to protect his dogs eyes from sunlight and wind, his company went on the make over $3 million in annual sales, with the goggles being at $19.99. Despite the Daily Mail dismissing the idea as “useless,” Di Lullo’s idea was adopted by the US military in order to protect the eyes of army dogs working in Iraq from both sunlight and dust. (credit:WikiMedia:)
Ashley Madison(04 of08)
Open Image ModalThis is a dating website with a twist. With annual profits of approximately $20 million, it encourages married men and women to have an affair, and connects them. With 8.5 million members, Ashley Madison can be criticised perhaps for what it’s promoting, but not for its popularity. The creator, Noel Biderman somehow managed to clear this one with his wife, and even got her to feature in the company’s adverts. (credit:AP)
Laser Monks(05 of08)
Open Image ModalIn 2001, a group of monks from rural Wisconsin began to sell discounted printer cartridges and other office supplies, along with the offer of a prayer. The company, which used the monks’ 15,000-square-foot home to operate their business, made $3.5 million in sales in 2009, before being sold in 2011 for $2.6 million. (credit:AP)
Doody Calls(06 of08)
Open Image Modal‘Doody Calls’ is a service that cleans up after your dog so you don’t have to. Its popularity has rocketed since it was first set up by Jacob and Susan D'Aniello in 2000. The founders decided that there would be huge demand for a pet waste removal service, and they were right. The company has a total revenue of $4.5 per year, and disposes roughly 6.5 million doggie doos per year. (credit:Flickr:Skakerman)
J&D Foods(07 of08)
Open Image ModalBaconnaise, BaconPOP and Bacon Salt are amongst the multiple bacon-themed foods available to buy from J&D Foods. The company, which was set up in 2007, has been particularly successful in the bacon-loving USA, in which it has sold products across all of its states. It sold over 20,000 jars of their Bacon Salt within the first five months. (credit:Flickr:max_wei)
Longcrofts Cat Hotel(08 of08)
Open Image ModalLongcrofts, a five star luxury hotel for cats, gives our feline friends a luxurious little break away from their owners. The company enjoyed so much initial success they now have four hotels open, making $180,000 a year. (credit:Flickr:veer66)