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Tesco shares hit 14-year low after fresh profits warning

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Tesco shares hit 14-year low after fresh profits warning

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British retailer Tesco has issued a fourth profit warning for the year, so shares hit a 14-year low, losing some 17% at one point.

The world’s third-biggest supermarket chain has shocked the market with the latest write-down, which says 2014’s profits will be nearly 30% shy of the average analysts’ forecasts.

Being blamed are costly and unsuccessful attempts to expand into Asia and the US, the impact of discount retailers who have increased market share at the expense of their higher-cost established rivals, and management failings that have led to accounting scandals and possible law suits.