Tesco (TESO), Britain's largest grocer operating primarily in the UK and Ireland, is reportedly exploring a possible sale of its central and eastern European operations as the company continues to assess the shape of its international footprint. The FT reported that Tesco is working with bankers on options for its businesses in Hungary, the Czech Republic and Slovakia, where the group runs more than 500 stores.
The potential review follows Tesco's earlier exit from most of its international operations, including the sale of its Polish supermarket business in 2020. Tesco said it does not comment on rumor or speculation, while its annual report pointed to weaker profit in its Eastern operations due to greater competition in Slovakia and ongoing regulatory pressure.
Investors may view the possible sale as another sign that Tesco is sharpening its focus on the UK and Ireland, where the company has reached its highest market share in more than a decade. Under CEO Ken Murphy, Tesco has gained support from its Clubcard loyalty program and price-matching strategy against discount rivals, suggesting the group may be prioritizing stronger core-market execution while weighing options for lower-pressure growth outside its main base.