Tesco heads for checkout from Poland in 819 mln PLN sale
British supermarket group Tesco has said it is selling its Polish branch for PLN 819 mln (EUR 183.5 mln) and intends to concentrate on other markets in the Central Europe region.
In a statement, CEO Dave Lewis said: “We have seen significant progress in our business in Central Europe, but continue to see market challenges in Poland.
“Today’s announcement allows us to focus in the region on our business in the Czech Republic, Hungary and Slovakia, where we have stronger market positions with good growth prospects and achieve margins, cashflows and returns which are accretive to the Group.”
The buyer of its 301 stores in Poland is Denmark’s Salling Group A/S, which is also the owner of the Netto chain of discount supermarkets.
The first Netto store in Poland was established in 1995 in Szczecin. The company currently has over 383 stores, three distribution warehouses and employs over 5,000 people.
Tesco, which is Britain's largest supermarket chain, has already sold its stores in Thailand and Malaysia in March, which means that withdrawal from Poland is another signal of limiting the company's once global ambitions.