Tesco is reportedly considering the sale of its operations in Hungary, the Czech Republic and Slovakia, a move that would mark the British retailer's complete exit from international markets outside the UK and Ireland, according to reports by the Financial Times and Reuters.
According to the reports, Tesco is working with advisers to evaluate strategic options for its Central European business, which employs more than 22,000 people and operates 561 stores across the three countries. The company has not confirmed the reports, with a spokesperson telling Reuters that Tesco "never comments on rumour or speculation."
Tesco entered the Hungarian market in 1995 and expanded across Central Europe as part of its international growth strategy. However, since 2015, the retailer has steadily divested overseas businesses, including operations in South Korea, Thailand and Malaysia, to focus on strengthening its position in its domestic market. A sale of the remaining Central European business would complete that strategic shift.
The Central European division remains a relatively small part of the group's overall business. In the 2025/26 financial year, it generated sales of £4.49 billion and an adjusted operating profit of £115 million, accounting for around 4% of Tesco's total group profit. During the same period, the group reported total sales of £66.6 billion and profit of £3.15 billion.
The reports suggest that a disposal could allow Tesco to further increase investment in its core UK and Ireland operations, where competition from discount retailers remains intense. The company has been investing heavily in pricing, technology and store upgrades to defend its market-leading position.
Any transaction would be closely watched across the region, as Tesco remains one of the largest food retailers in Central Europe. While no potential buyers have been identified and there is no indication that a formal sale process has begun, the reported move could become one of the most significant retail transactions in the region if it proceeds.
