Tesco is reportedly considering selling its Central European operations, a move that could see the retail giant withdraw from Hungary after more than 30 years in the market.
According to the Financial Times, the UK’s largest supermarket chain is working with investment bankers to evaluate strategic options for its businesses in Hungary, the Czech Republic and Slovakia. If the sale goes ahead, it would mark the end of Tesco’s long-running expansion outside its core UK and Irish markets.
When contacted about the reports, Tesco said it does not comment on “rumours or speculation.”
Nearly 9,000 jobs in Hungary
Tesco currently operates around 200 stores in Hungary as part of a Central European network of 871 outlets employing approximately 22,000 people. According to Hungarian company registry data, Tesco-Global Áruházak Zrt. employs 8,951 people in Hungary alone.
Despite its sizeable presence, the Hungarian business has struggled financially in recent years. The company reported an after-tax loss of HUF 10.5 billion for the financial year ending in February 2025, following a HUF 21.6 billion loss the previous year. Combined, Tesco’s Hungarian operations have accumulated more than HUF 32 billion in losses over the past two financial years.
Central Europe contributes little to group profits
While the region generates significant sales, it accounts for only a small share of Tesco’s overall earnings. Tesco’s Central European division recorded revenue of GBP 4.49 billion during the 2025/26 financial year, representing growth of 3.7% at constant exchange rates. However, profitability declined slightly, and the region contributed only around 4% of the group’s operating profit.
In its latest annual report, Tesco cited increasing competition in Slovakia and growing regulatory pressures across the region as factors weighing on profits. Analysts note that these pressures likely include Hungary’s retail-specific taxes and government price regulations.
Not the first time exit rumours have surfaced
This is far from the first time speculation has emerged about Tesco leaving Hungary. Similar reports circulated in 2015, following the sale of Tesco’s South Korean business, and again in 2020, when the retailer exited Poland. On those occasions, Tesco repeatedly denied plans to leave Hungary, even launching a public advertising campaign reassuring customers that it was staying.
Since then, however, the company has steadily retreated from several international markets, including Thailand, Malaysia, China, Türkiye and Poland, while sharpening its focus on the UK and Ireland.
Tesco thriving at home but facing headwinds in Hungary
Ironically, the reported review comes as Tesco has regained momentum in its home market. After losing ground during the 2010s following an accounting scandal and fierce competition from discount chains, Tesco has strengthened its position in the UK, increasing its market share to more than 28% through investment in convenience stores and online shopping.
Hungary has been a different story. The retailer has faced mounting challenges, including high inflation, sector-specific taxes, mandatory promotions and government price controls. At the same time,
competition has intensified, with Lidl overtaking Tesco as Hungary’s largest supermarket chain in 2020 and continuing to expand its lead.
Tesco’s Hungarian workforce has also shrunk, falling from more than 11,000 employees in late 2022 to around 9,400 earlier this year.
Meanwhile, Auchan has announced ambitious expansion plans, aiming to become Hungary’s third-largest supermarket chain within the next seven years through a strategy focused on smaller stores and click-and-collect services.
If you missed it: Auchan plans nationwide expansion in Hungary after its local business becomes fully Hungarian-owned
