Tesco sells Poland business due to “market challenges”

Retailer Tesco has announced the sale of its business in Poland in a new disposal deal.

The firm has sold its 301 Polish stores, as well as associated distribution centres and head office, to Salling Group A/S for the equivalent of £165m.

The deal follows Tesco’s disposal of its Thailand and Malaysia businesses earlier this year.

Dave Lewis, chief executive of Tesco, commented: “We have seen significant progress in our business in Central Europe, but continue to see market challenges in Poland.

“Today’s announcement allows us to focus in the region on our business in Czech Republic, Hungary and Slovakia, where we have stronger market positions with good growth prospects and achieve margins, cashflows and returns which are accretive to the group.

“We see this transaction as the best way to secure the future of the business for our colleagues and customers in Poland.”

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