Tesco explores sale of Central European retail operations

Tesco is exploring the sale of its Central European operations, with plans to potentially divest its Czech and Slovakian businesses separately from its Hungarian network. The British retailer is reportedly working with financial advisors Goldman Sachs and Citi to facilitate the process, with initial bids expected by the end of September.

Several major retail groups have been identified as potential bidders for the Czech and Slovakian assets, including the Schwarz Group (owner of Lidl and Kaufland), Ahold Delhaize, and Biedronka. While Kaufland has been mentioned in connection to the Hungarian market, the company stated it currently has no plans to enter the Hungarian retail sector.

The regional division, which includes 561 stores and employs over 22,000 people, generated £4.49 billion in sales during the 2025/26 financial year. A sale would align with Tesco’s long-term strategy to focus investment on its core markets in the UK and Ireland. In Hungary, the retail environment remains complex due to regulatory factors and specific taxation policies affecting foreign-owned chains.