Tesco weighs sale of Central European operations, risking exit from Slovakia, Czech Republic and Hungary

British retailer Tesco is reportedly evaluating the sale of its remaining Central European business, which includes operations in the Czech Republic, Slovakia and Hungary. The division comprises 561 stores and employs around 22,000 people across the three countries. Financial Times and Reuters reports say Tesco is working with financial advisers to explore strategic options, but the company declined to comment, stating, “We never comment on rumors or speculation.”

The Central European unit generated roughly £4.5‑£4.6 billion in revenue in the last financial year, contributing only a small share of Tesco’s overall earnings. The business has faced growing competition from discount chains such as Aldi and Lidl, as well as increasing regulatory pressure, leading to a £75‑£115 million impairment on the value of its stores. Analysts suggest that any proceeds from a sale could give Tesco additional financial flexibility to invest in its core UK market.

If a divestment proceeds, it would represent a major strategic shift for the group and could affect thousands of jobs and the competitive landscape in the three Central European markets.