Tesco is exploring a potential sale of its Central European business, according to a report by the Financial Times, in a move that could mark the retailer's final withdrawal from major overseas
markets.
The UK's largest supermarket chain is said to be working with advisers to examine options for its operations in the Czech Republic, Hungary and Slovakia, which together represent Tesco's only significant business outside the UK and Ireland.
Responding to the report, a Tesco spokesperson declined to comment, saying: "We never comment on rumour or speculation."
Industry analysts have long questioned the future of Tesco's Central European division after the company spent the past decade retreating from international markets to concentrate on its domestic business. Since 2015, Tesco has sold operations in countries including South Korea, Thailand and Malaysia.
The Central European business operates 561 stores and accounted for around 4% of Tesco's group profit during the 2025-26 financial year.
Despite recurring speculation over its future, Tesco has previously signalled its commitment to the division. In 2023, chief executive Ken Murphy described the business as an "integral part" of the company, telling shareholders it required little management attention while supporting the wider group.
During the 2025-26 financial year, the division generated sales of £4.49bn, an increase of 3.7% at constant exchange rates. Adjusted operating profit slipped 0.9% to £115m.
Across the group, Tesco reported annual sales of £66.6bn and a profit of £3.15bn.
The retailer has continued to invest heavily in its core UK operations, where it holds a 28% share of the grocery market. However, sales growth eased during the first quarter of the current financial year.
Tesco shares have risen about 6.5% since the start of the year, reflecting continued investor confidence despite signs of slowing growth in its home market. Photo by C41n, Wikimedia commons.
