LONDON, January 18, 2013 /PRNewswire/ -- Tesco has been confirmed as the largest retailer in the UK, with annual UK sales of £42.8 billion. But whilst the dominance over its rivals is considerable in terms of sales, the retail giant still faces a number of challenges. In a new report that analyses the strengths, weaknesses, opportunities and threats of the country's top 10 retailers by annual sales, Tesco heads a list that also contains Sainsbury's, Asda, Morrisons, Marks & Spencer, Co-operative Group, John Lewis Partnership, Boots, Home Retail Group and Kingfisher. According to the Retail Week 2013 SWOT report, Tesco delivered UK operating profit of £2.48 billion for 2011/12 across nearly 3,000 stores. Amongst the strengths that helped deliver that result, was the fact that some 12% of all retail spending goes through its tills (about 30% of all food sales), which gives it huge advertising reach with customers, leverage with suppliers and access to talent. However, the Retail Week 2013 SWOT report points out that the UK retail giant also has its weaknesses, including "long standing issues" in the UK and a US business that has struggled from the start and is now under review. Tesco's opportunities include the £1bn investment it has set aside for a UK revamp. Amongst the threats the grocer faces are the high levels of competition it faces in the UK from rivals such as Asda and Sainsbury's. There is also potential for further disruption in overseas markets that include Eastern Europe and China. Retail Week, the UK's leading provider of retail industry news, analysis, jobs and data, from across the entire retail sector, today (Thursday 18 Jan) released its annual SWOT report of 10 of the UK's major retailers.