The UK retailer giant Tesco sold its Polish operations to Denmark’s Salling Group for PLN900mn (€226.82mn), Tesco said on June 18.
The transaction ends Tesco’s struggle on the demanding Polish market, where non-UK brands such France’s Auchan, Portugal’s Jeronimo Martins and Poland’s own Dino, are strong.
Poles’ shopping habits have also changed in recent years, with customers moving towards smaller, more conveniently located stores or to discounts. That proved a problem for Tesco, which relied on large hypermarkets.
Tesco operated 455 stores in 2014. That diminished to 345 last year.
“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,” Tesco’s chief executive Dave Lewis said in a statement.
The buyer, Denmark’s Salling Group, operates Netto stores in Poland.
Related Articles
Non-performing loans hit historic low in CESEE, but early warning signs emerge, says EBRD
Non-performing loans (NPLs) in central, eastern and south-eastern Europe (CESEE) fell to their lowest levels since the global financial crisis in 2024, but early indicators suggest rising risks ... more
Malawi-focused Mkango Resources' unit to merge with US-based Crown PropTech
Lancaster Exploration (Lancaster), a subsidiary of Mkango Resources (Mkango), has announced a merger with Crown PropTech Acquisitions (CPTK), a US-listed special purpose acquisitions company. ... more
Glass wool production restarts in Hungary after 16-year hiatus
Glass wool manufacturing has resumed in Hungary after a 16-year break, as the first trial products rolled off the production line at a new thermal insulation plant built in northeastern Hungary ... more
Most Read
-
Putin to skip Rio BRICS summit over ICC warrant as Xi signals no-show
15 days ago
-
Turkey yet to prove rare earth deposit has suggested “giant” potential despite reported processing talks with China
10 months ago
-
Uproar in Mongolia as development bank reveals scale of risky loans and NPLs
3 years ago