Tesco is exploring a potential sale of its Central European operations, marking a possible strategic shift as Britain’s largest supermarket group continues to strengthen its focus on its core UK and Ireland businesses.
According to reports, the retailer is working with financial advisers to assess options for its businesses in the Czech Republic, Hungary and Slovakia, which together operate a network of 561 stores.
The Central European division is Tesco’s only remaining large-scale business outside the UK and Ireland, following the sale of its operations in South Korea, Thailand and Malaysia as part of a long-term strategy to streamline international operations.
The business contributed around 4% of Tesco’s group profit during the 2025/26 financial year, generating sales of £4.49bn, up 3.7% at constant exchange rates, while adjusted operating profit edged down 0.9% to £115m.
Although analysts have long viewed the Central European business as a non-core asset, Tesco previously described the division as an integral part of the group, with Chief Executive Ken Murphy stating in 2023 that it required little management distraction from the retailer’s core UK operations.
Tesco has continued to invest heavily in its domestic market, where it holds a 28% share of the UK grocery sector, despite reporting slower sales growth during its first quarter.
The retailer generated total group sales of £66.6bn and profit of £3.15bn in the 2025/26 financial year, while its shares have risen approximately 6.5% since the beginning of the year.
