Tesco launches new Premier store brand in Hungary
Tesco has quietly opened Hungary’s first Premier convenience store in Csepel, marking a strategic shift aimed at strengthening its presence amid intensifying competition from discount chains like Lidl. The new Premier store replaces a former Tesco Express location, but its introduction signals more than just a simple rebranding.
Tesco is testing Hungarian waters with Premier
Premier is a well-established convenience store chain in the United Kingdom operated under the Booker Group, which the company acquired in 2018. Unlike Tesco Express stores—urban, small-footprint, wholly Tesco-owned outlets with a premium pricing model—Premier stores in the UK typically operate through franchise partnerships or independent retailers using Booker’s central distribution system. They focus on creating a welcoming, local shop atmosphere selling everyday groceries, fresh produce, drinks, ready meals, and household essentials, writes Pénzcentrum.
By launching Premier in Hungary, the company appears to be experimenting with a retail format that better suits city and residential neighbourhood shopping habits. It aims to compete more effectively with discount retailers by offering a family-friendly, corner shop experience that could potentially involve local entrepreneurs through franchising. This approach resembles models already popular in Hungary with chains such as Spar and Coop.
The Csepel store will serve as a test subject
The company confirmed it is treating the Csepel Premier store as a pilot, testing customer reactions and operational experiences before deciding on further rollout. The new store continues to use Tesco’s logistics, IT systems, and operational processes but features a refreshed layout and a product range tailored to local demands.
This move comes as the company faces regulatory challenges, including retail taxes and pricing controls in Hungary, along with market share pressure from discount retailers that dominate quick urban shopping. Tesco stated that heightened competition encourages investment to enhance its network, provide better value, and secure customer loyalty through broader and improved offerings at competitive prices.
Also notable is the opening of a fully Tesco-operated Premier store in Budapest’s Kossuth Lajos Street, where new innovations and operational models are under trial. The outcome of these pilot projects will shape Tesco’s future strategy in the fast-evolving Hungarian retail landscape.