Tesco Prepares to Exit Slovakia and Czechia: Who Will Buy the Supermarket Chain?

British retail group Tesco is preparing to exit the Slovak and Czech markets after nearly thirty years of operations, with potential buyers including major supermarket chains and state governments, according to reports by media. The prospective sale involves a combined network of more than 370 stores across both countries, representing a significant portfolio of retail real estate and established market share.

Tesco Operates Stores in Slovakia and Czech Republic

The operational scope of the planned exit spans two distinct retail markets. In Slovakia, Tesco operates 188 stores and ranks among the top three grocery chains by revenue. According to audited financial statements for the fiscal year ending February 2026, the Slovak division generated approximately 1,73 miliardy eur in revenue and a net profit of 26,4 milióna eur, while remitting 53,9 milióna eur in various fees to the parent group. Across the border in the Czech Republic, the company maintains 184 proprietary stores—comprising 87 hypermarkets, 58 supermarkets, and 39 Express locations—alongside 126 franchised Žabka outlets. The Czech division employs roughly 7,000 workers and recorded annual revenues near 1,6 miliardy eur.

Advisory banks Citigroup and Goldman Sachs were appointed by Tesco in early August to orchestrate the transaction, distributing sales memoranda to prospective buyers. The Czech and Slovak segments are being marketed together as a single package, whereas the Hungarian division is slated for a separate offering. Financial advisors value the Czech portfolio between 10 miliárd a 15 miliárd korún — približne 410 miliónov až 620 miliónov eur — while combined valuations for the Czech and Slovak operations approach one billion euros. Real estate assets underpin a substantial portion of this enterprise value, given that Tesco owns approximately 62 percent of its Central European store properties. Aggregate market value for these real estate holdings across the Czech Republic, Slovakia, and Hungary reaches approximately 2,14 miliardy eur.

European Retail Conglomerates Submit Non-Binding Bids

Initial non-binding bids closed at the end of September, drawing interest from several major European retail conglomerates. Financial Times sources identified the prospective bidders as Schwarz Gruppe—operator of Lidl and Kaufland—Ahold Delhaize, owner of the Czech Albert chain, and Portuguese retailer Jerónimo Martins, which operates the Biedronka banner. Each suitor presents distinct structural advantages alongside significant regulatory hurdles. Schwarz Gruppe possesses substantial capital reserves, yet its dominant footprint with Lidl and Kaufland raises severe antitrust concerns under scrutiny from competition authorities.

Regulatory friction also characterizes potential bids from state actors. Sources within government circles in both Prague and Bratislava indicate that the Czech and Slovak administrations have examined potential state acquisition frameworks, with the Czech side displaying greater initiative. Financial maneuvering for a state-backed purchase could draw upon dedicated public reserves, such as a 400 miliónov eur allocation in the Slovak budget matching estimated local asset valuations. However, corporate strategy at Tesco continues to favor private sector counterparties over direct state intervention.

Central Europe Exit Follows Multi-Year Restructuring

A withdrawal from Central Europe aligns with Tesco’s multi-year restructuring directives following an accounting scandal in 2014. The British retailer previously liquidated its American Fresh & Easy subsidiary in 2013, divested its South Korean operations in 2015, and disposed of its Thailand and Malaysian hypermarket businesses for 8 miliárd libier v roku 2020. That same year, the Danish Salling Group acquired Tesco’s Polish network. Central Europe remains the enterprise’s final substantial foreign operating theater outside the domestic UK and Irish markets.

Thin operational margins reinforce the economic rationale for the divestment. During the first half of the current fiscal year, the Central European division—inclusive of Hungary—reported revenues of 2,31 miliardy libier, equivalent to approximately 2,75 miliardy eur. Adjusted operating profit advanced 38.4 percent year-over-year to 63 miliónov libier, or roughly 75 miliónov eur, yielding an operating margin of 2.6 percent. Analyst Robert Le Veneur noted to Forbes Czechia that profit margins hovering around 2.5 percent make a complete exit a logical capital allocation decision for the parent group.

Regulatory Clearances Could Extend Transaction Timeline

Commercial operations across all existing locations continue without immediate disruption while corporate negotiations proceed. Regulatory clearances from the Slovak Antimonopoly Office, the Czech Office for the Protection of Competition, and potentially the European Commission could extend the transaction timeline across a two-year horizon. Market analysts emphasize that regulatory reviews will evaluate localized store density and regional overlaps rather than solely national market shares, potentially triggering mandated divestitures to secondary operators should a dominant incumbent secure the primary acquisition package.