Strong market position in the relatively concentrated supermarket and liquor retailing sector in Australia and New Zealand Near-term earnings and margin pressure from strong and intensifying supermarket competition Execution risks associated with the group's turnaround strategy in supermarkets and discount department sector Improving financial risk profile that is reliant on an investment in price, service, and systems to stabilize market share Substantial use of off-balance-sheet operating lease finance Large, ongoing capital-expenditure requirements The stable outlook on Woolworths Group Ltd. reflects our expectation that the group's investment in price, service, and systems will support a stabilization of market share and a return to satisfactory earnings growth over the near term, despite earnings and margin pressure. We consider that the company is
