Tesco reportedly mulling sale of Eastern European business

Tesco is believed to be considering a sale of its Eastern European business in a deal that would seemingly bring to an end the British supermarket giant’s efforts to establish a global brand.

According to the Financial Times, the retailer is working with bankers to explore options for operations in Hungary, the Czech Republic and Slovakia, with a sale to boost attempts to cut prices in its home market.

In a statement to the media outlet, Tesco said: “We never comment on rumour or speculation.”

Tesco operates 561 stores across the three regions, yet its profit in Eastern Europe decreased according to its most recent financial report, with increasing competition in Slovakia and rising regulatory pressure weighing on performance.

The business first launched in Hungary in 1995, and has sold its clothing line, F&F Clothing, through local hypermarkets and its online platforms.