Tesco exploring sale of Central Europe operations, FT reports
The move would end Tesco’s global expansion strategy and sharpen its focus on UK and Ireland operations, which generated £3.15 billion in profit last year.
- Tesco is exploring a sale of its central and eastern European operations, a move that would end a three-decade effort to build a global retail empire across Hungary, the Czech Republic, and Slovakia.
- This potential divestment follows a long-term strategic retreat from international markets, including the £8 billion sale of its Thailand and Malaysia unit in 2020 and the loss-making US Fresh & Easy venture shutdown in 2013.
- Operationally, the European division employs around 22,000 people but generated only £115 million of the group's £3.2 billion in adjusted operating profit last year, while increased competition and regulatory pressure triggered a £75 million store write-down.
- A sale would allow Tesco to refocus on its core UK and Ireland operations, where it holds its highest market share in over a decade through Clubcard loyalty programs amid intense competition from discounters Aldi and Lidl.
- Proceeds from a potential sale would bolster Tesco's ability to cut prices and increase share buy-backs, though Tesco Chief Executive Ken Murphy described the European arm as "an integral part of the group" in 2023.
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According to the newspaper, the supermarket chain would divest its stores in the Czech Republic, Hungary and Slovakia.
Tesco 'in talks' to ditch European operations
Tesco is reportedly considering cutting loose its business in central and eastern Europe in a move to end its expansion outside of the UK and Ireland. The supermarket giant has hired bankers to explore the possibility of a sale of its operations in Hungary, the Czech Republic and Slovakia, according to the Financial Times. A Tesco spokesperson said: “We never comment on rumour or speculation.” Tesco has made several attempts to conquer the shopp…
The British department store chain is considering selling its entire Central and Eastern European business. The Hungarian company, which employs nearly 9,000 people, has generated losses of 32 billion in the past two business years.
British retailer Tesco is considering selling its Central European operations in the Czech Republic, Slovakia and Hungary, the Financial Times (FT) reported. The company is reportedly in talks with bankers about possible options for the future of the businesses, which together employ more than 22,000 people, around 10,000 of whom are from the Czech Republic.
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