Leading market position in the U.K. grocery market complemented by No.1 or No.2 market positions in international markets. Some degree of geographic diversification, with about one-fifth of Tesco's retail sales and profits generated outside of the U.K. Proposed acquisition of Booker is supportive for the business in the long term due to its complementary share of the U.K. food market, advanced existing and synergetic with Tesco e-commerce capabilities, and combined scale underpinning stronger purchasing power. Our forecast of stable profitability with S&P Global Ratings' adjusted EBITDA margin of 6%-7% over the medium term that compares favorably with other grocery retailers, even taking into account lower-margin Booker business. Challenging trading conditions and competitive pressure, mainly from discounters, resulting in the decline
