Tesco is reportedly considering the sale of its Central European operations, a move that could mark the supermarket giant’s final major step away from international markets as it continues to focus on its core businesses in the UK and Ireland.
According to a report by the Financial Times, Tesco is working with financial advisers to evaluate strategic options for its operations in the Czech Republic, Hungary and Slovakia. The company has not confirmed the report.
“We never comment on rumour or speculation,” a Tesco spokesperson said in response to questions about the reported plans.
Tesco’s Central European business operates 561 stores across the three countries and remains the retailer’s only significant business outside its home markets. Industry analysts have long viewed the division as an exception within Tesco’s broader strategy, which has seen the company withdraw from most overseas markets over the past decade.
Since 2015, Tesco has sold several international businesses, including operations in South Korea, Thailand and Malaysia, as part of a restructuring programme aimed at concentrating resources on the UK and Ireland. Those disposals were designed to simplify the company’s operations and strengthen its position in its largest markets.
The Central European division contributed around 4 percent of Tesco’s total group profit during the 2025-26 financial year. The business generated sales of £4.49 billion, representing a 3.7 percent increase at constant exchange rates compared with the previous year. Adjusted operating profit, however, slipped slightly by 0.9 percent to £115 million.
Across the wider group, Tesco reported annual profit of £3.15 billion on total sales of £66.6 billion, highlighting the continued importance of its domestic operations to overall financial performance.
Although speculation about the future of the Central European business has surfaced repeatedly over the years, Tesco’s leadership has previously defended its presence in the region. In 2023, Chief Executive Ken Murphy described the division as “an integral part” of the company and said it did not distract management from running the core UK business.
Despite those earlier comments, analysts believe changing market conditions and Tesco’s continued investment in Britain and Ireland could make a sale more attractive if the right offer emerges.
The retailer has been directing substantial investment toward improving stores, expanding digital services and strengthening its competitive position in both the UK and Irish grocery markets. Even so, the company recently reported that sales growth slowed during its first quarter, reflecting continued pressure on consumer spending and strong competition within the supermarket sector.
Investors have largely remained confident in Tesco’s performance. The company’s shares have gained around 6.5 percent since the start of the year, supported by steady earnings and its dominant position in the UK grocery market.
Any decision to sell the Central European operations would represent another major milestone in Tesco’s long-term strategy of concentrating on its strongest and most profitable markets while streamlining its international footprint.
You must be logged in to post a comment Login