Tesco exploring sale of Central European operations 

Supermarket group looking at options for its operations in the Czech Republic, Hungary and Slovakia, according to reports

Tesco has expanded strongly in Ireland in recent years and holds a dominant share of the grocery market in Ireland, narrowly behind Dunnes Stores. Picture Denis Minihane

Supermarket retailer Tesco is exploring a sale of its Central European operations, the group's only sizeable business outside the UK and Ireland, the Financial Times reported.

It said the supermarket group was working with bankers on options for its operations in the Czech Republic, Hungary and Slovakia.

"We never comment on rumour or speculation," a Tesco spokesperson said.

Analysts have long seen the division, which trades from 561 stores, as an anomaly, given Tesco has since 2015 divested nearly all of its overseas assets, including businesses in South Korea, Thailand and Malaysia, so it can focus on the market closer to home.

The division contributed about 4% of the group's profit in Tesco's 2025-26 financial year.

Tesco has rarely commented on the Central and Eastern Europe division's future, but in 2023, chief Ken Murphy told shareholders it was an "integral part" of the group, providing little distraction to management from the core UK business.

The division reported sales of £4.49bn in 2025/26, up 3.7% at constant exchange rates, and an adjusted operating profit of £115m, down 0.9%.

The group made profit of £3.15bn on sales of £66.6bn.

Tesco has been investing heavily in its home market, where it has a market share of 28%. Sales growth did, however, slow in its first quarter. Shares in Tesco have increased 6.5% so far this year.

Tesco has expanded strongly in Ireland in recent years and holds a dominant share of the grocery market in Ireland, narrowly behind Dunnes Stores.

Its most recent quarterly results show sales in Ireland growing 5.56% to €966m. Across the entire group, Tesco expects an operating profit this year of between €3.46bn and €3.81bn.

Tesco's online sales in Ireland were up 10.9%, while food sales up 3.7%, with volume growth across both fresh and packaged products.

Reuters