The stock market experts of London have been thinking a lot about the future of Tesco, and their prediction is: the supermarket will exit East-Central Europe.
Stock analysts from London believe that Tesco will eventually leave our region. There has been a lot of gossip about the Schwarz Group –including Lidl and Kaufland – taking over Tesco’s spots, reported Napi.
It was previously announced that Tesco is leaving Poland, and now Ken Murphy, the newly appointed CEO of Tesco, will review the remaining subsidiaries in the Czech Republic, Hungary, and Slovakia and evaluate whether they will exit the region or continue to operate.
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A possible buyer could be the Schwarz Group, and even though their PR office denied the gossip, there are things that point to the prediction of the British analysts being right, such as the fact that Dave Lewis – former CEO – denied Tesco leaving Poland several times before eventually having to sell to Salling Group due to Tesco financially doing very poorly there.
Salling Group paid 900 million zlotys (approx. €200 million) for the Polish subsidiary, which included the company’s headquarters there, 301 stores, and a distribution centre.
Dave Lewis has previously spoken about Tesco having to focus on how the supermarket’s stores do in the Czech Republic, Hungary, and Slovakia, and that the selling of the Polish market should help this.
Source: napi.hu
9 comments
I certainly hope they don’t leave Hungary because they have much better selection of food than the other grocery stores outside of the Budapest region. They could help their business by offering curbside pick up in all their stores and expand their online ordering of groceries throughout ALL of Hungary for home delivery.
I agree with Jack Russell, the product range is much better and their home delivery service is usually very good. Far better than the rest of them. But unfortunately, if Tesco Poland has already gone, then for sure the rest will follow.
The problem (for me) is that Tesco Hungary offers a very limited selection of products in comparison to the British stores. It’s like comparing chalk and cheese. For instance, UK Tescos have a wide variety of beef steaks, dofferent cuts, clearly labelled Porterhouse, T Bone, Sirloin, Fillet, Rump, Ribeye, organic / non organic. Tesco in Hungary offers just one, simply called ‘steak’. Likewise the selection if herbs and spices is dreadful. Properly prepared joints of meat, beef ir pork, don’t exist here. Forget about a leg of lamb or lamb mince. Fresh baby sweetcorn or oriental vegetable, none. Tesco is pathetic. But then all the supermarket chains here are rubbish. Lidl and Aldi also only sell a fraction of their product range in their Hungarian stores compared to the UK and Germany.
We need less Tesco’s and more middle-upper range supermarkets like Waitrose… Tesco’s are ugly to look at
The product range in Hungarian stores compared to other countries is bad because people in Hungary do not demand high quality products because most of the people eat rubbish food (proudly)…
Regardless of what everyone thinks, true Tesco doesn’t have the selection that the UK shops have but it is still better than the other shops I have outside the Budapest area to shop at. Penny Market, Aldi and Lidl have very little in their stores that I will eat. It is true that many Hungarians cannot afford the better cuts of beef and lamb thus they don’t stock what they cannot sell. Regardless if Tesco stepped up their customer service they would do better here.
ALL these comments, as a resident of Hungary, rest comfortable with me.
Noticeable, which is annoying and frustrating, is the infrequency of re-stocking of shelves.
This wrong practice occurs in peak hour shopping time and shelves are emptied, and there re-filled conducted when it suits the time frame of the particular supermarket.
The worst offenders are Lidle and Aldi.
There stock control is abysmal.
Hungarian supermarkets do not have the SKU’s that commentators have referred.
Australia, choices are “gracious” in number, when supermarket shopping.
This problem that Hungary does experience, is it caused by the German and Dutch supermarkets chains, that operate and dominate in Hungary ?
My answer is YES.
The citizens in time can demand change, if they wish that is, or it will remain BLAND as could be said that supermarket shopping scene presently is in Hungary to-day.
Stay Well -ALL.
If Tesco invested in some state of the art Ordering software, that includes SKU’s they could in real time see what items need to be sent from the Distribution Center, what items are in short supply on the shelves but still in the back stockroom that could be stocked. They could see when an items is NOT selling, they could see when an item has not been entered into the SKU system at the checkouts and they could also do better with their self check out system by offering the option of more than one language because I don’t use them because if there is an issue I have no way to know what the system is saying needs to be corrected or done. Then you get a sour look from the attendant because you don’t understand. Tesco needs to improve but compared to the other major chains they are better than nothing for certain.
Fidesz will be happy, they want the foreign supermarkets out so that their friends can dominate. But CBA is one of the worst!