Tesco was struggling to gain market share in Poland, and it has higher costs compared to their competitors. Tesco also said it would continue to try to sell 19 stores not included in the transaction, after accepting offers to sell 22 stores, for net proceeds of £ 200m in the past 18 months.
The sale of Polish activities completed, even as Tesco took a key role in the pandemic locking coronavirus, the leaves of Ireland and Central Europe operations in the Czech Republic, Hungary and Slovakia, the only non-UK activities remaining.
Tesco has left Japan, South Korea, the United States and Turkey in recent years. Most recently, in March he sold his Southeast Asia operations to Thailand and Malaysia for € 10.6 billion (£ 8.5 billion) in cash.
Tesco CEO Dave Lewis said: “We have seen significant progress in our business in Central Europe, but continue to see the challenges of the market in Poland. Today’s announcement allows us to focus in the region on our activities in the Czech Republic, Hungary and Slovakia, where we have strong market positions with good growth prospects and realize margins, cash and returns which are accretive for the group. ”
Tesco’s international expansion strategy was sponsored by Sir Terry Leahy, who was the CEO of the supermarket for 14 years, until 2010.
However, in recent years Tesco has sold an international business chain as it fired and has tried to strengthen its position as a grocery store by revenue.
Before the sale of Thai operations from the previous major movement came in 2015, when Lewis sold the South Korean supermarket business.
Lewis faces criticism last month after he was awarded the biggest pay for a Tesco boss since Leahy, at £ 6.42m. He came after the supermarket accepted a £ 585m business holiday rate.