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Tesco Considers Selling Its Stores In Central Europe, Including Hungary

By Tamás Székely // 2015.09.09.

British retail company Tesco is considering a departure from some countries in Central Europe, including Hungary, as part of its global austerity plan, news portal reported via Slovak daily Sme. Tesco’s activities in Hungary could be sold in a package together with activities in Slovakia, the Czech Republic and possibly Poland, the daily said referring to an unnamed British investor familiar with the chain’s austerity plan.

Another scenario is the sale of Tesco’s entire networks in the individual states. There is also a possibility that Tesco will stay in the region but will sell some of its assets, the investor said. Tesco has allegedly inquired whether it would find a buyer for its Central European assets. According to the source, however, no decisions have been made yet. Tesco did not confirm any of the information. Its spokesman Matt Francis told Sme the company would not comment on speculation. However, media speculations suggest USA-based Walmart, French Groupe Casino and Japanese Aeon are all among potential buyers.

Tesco is introducing austerity measures in Britain in an effort to cope with falling prices and customer numbers. The austerity plan should help Tesco end years of a decreasing market share and resolve problems caused by a financial scandal when the company overstated its profits. Tesco said at the beginning of this year it would close 43 loss-making shops in Britain and later it also shut down 13 loss-making shops in Hungary in February.

via and photo:  János Vajda – MTI