Tesco heads for checkout from Poland in 819 mln PLN sale

Tesco announced it is leaving Poland after 25 years. Darek Delmanowicz/PAP

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. 

The company said it had sold its 301 stores for 819 mln PLN. Darek Delmanowicz/PAP

“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 buyer is Denmark’s Salling Group A/S, which is also the owner of the Netto chain of discount supermarkets.Netto Polska/Facebook

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.

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. ANDY RAIN/PAP/EPA

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.