Leading market position in the U.K. grocery market, complemented by No.1 or No.2 market positions in the international markets. Challenging trading conditions evidenced by declining profitability, accompanied by topline pressures. Increased competitive pressures in the U.K. from discounters and other traditional competitors could suppress tangible benefits from management's turnaround plan. Despite some geographic diversification, the U.K. still accounts for around two-thirds of Tesco's retail sales and profits. Sizable debt after lease and pension adjustments. Strong liquidity underpinned by large liquidity resources and long-term debt maturity profile. The new management has announced certain disposals, reduction in capital expenditure (capex) and cancellation of dividends with a view to preserve cash and improve the longer term financial position of the group. The stable
