Tesco has reported its largest fall in sales for decades as shoppers turn away from Britain’s biggest retailer.

The supermarket chain reported that like-for-like sales fell by 3.7pc in the UK in the three months to May 25.

Philip Clarke, Tesco’s chief executive, admitted he had not experienced a larger fall in sales during his 40 years at the retailer.

However, he said he had no plans to quit as boss of Tesco.  Mr Clarke said: “I have never been more determined. I’m not going anywhere. I am going to see through a fundamental reshaping of Tesco.”

Tesco is losing sales as the German discounters Aldi and Lidl attract shoppers at a rapid pace.  When asked whether the performance was due to strategic errors, he said the company should have been quicker in shifting the focus of its expansion from supermarkets to convenience stores. Maybe supermarkets have had there day and are indecline.