The U. K.'s largest retailer, Tesco Plc has said that it has recorded a fall of 24.5 per cent in profits during the first six months of the year.

Experts said that the super market recorded a fall in profits during the period has British households, who are facing a liquidity crunch, moved to budget chains while others switched to Waitrose, Marks & Spencer and Sainsbury's for improved service. Data showed that Tesco's profits fell 24.5 per cent to £1.39billion during the first six months of 2013.

The retail chain is aiming to revive its business and has decided to spend £1billion on makeovers, new food lines and extra staff. Tesco has been able to retain its position as the largest supermarket chain in the UK, but it has been struggling against rivals to maintain its market share in the market.

Experts have said that Tesco is among the four largest supermarkets along with Asda, Sainsburys and Morrisons in the UK that are facing competition from the likes of Marks & Spencer and Waitrose at the premium market and from Aldi and Lidl in the budget market. Tesco has been trying to expand its presence in the premium market but has been struggling against rivals.

According to a latest report, Tesco had a market share of a 30.2 per cent in the 12 weeks to 15 September. However, the report form Kantar Worldpanel also showed that it was recorded higher at 30.9 per cent during the same period of the previous year.