The loss was blamed on a worse than expected underlying sales performance, as like-for-likes at the retail chain fell 6.6 per cent for the year to February 3.
The retailer said total group profit before tax fell 74 per cent to£16 million, down from£61.5 million the previous year. However. multichannel revenue rose to£77.2 million following the launch of the Big Red Book.
Chief executive Trevor Bish-Jones said: 'The retail environment is likely to remain challenging in the current year. The first seven weeks of the financial year have begun positively, but it is early days and we will continue to manage the business tightly.'
The group said trading performance was variable across categories, with entertainment and confectionery weak and toys and stationery doing well.
Woolworths plans to restore the retail arm to profitability through further expansion of its multichannel offer, better margins from a supplier review programme and lower costs and markdowns.
The retailer will launch a Worth It! value brand, featuring several hundred items at competitive entry price points.
Sales at the EUK wholesale and publishing arm increased by 29.7 per cent. Over the year, EUK acquired wholesaler THE and publisher Bertram Group and won a contract to supply Virgin Retail.
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