Tesco explores sale of Central European stores

Tesco, Britain's largest supermarket chain, is reportedly exploring a sale of its businesses in Hungary, the Czech Republic, and Slovakia, a move that would mark its final retreat from international expansion and a sharpened focus on its core UK and Irish markets. According to reports, the company has engaged investment bankers to evaluate strategic options for the division, which represents its last substantial overseas operation.

The potential sale would conclude a three-decade effort to build a global retail presence that began with Tesco's entry into Hungary in 1995. Since then, the company has steadily dismantled much of its international footprint, exiting markets including the United States, South Korea, China, Thailand, Malaysia, Poland, and Türkiye. The reported review signals a definitive end to its ambitions of becoming a global retail giant.

The Central European operations comprise a significant network, with sources indicating between 561 and 871 stores across the three countries, employing over 22,000 people. The division generated approximately £4.5 billion in revenue in the most recent financial year. However, its contribution to group profitability is modest,...