This is its latest pullback out of international markets, as the retailer assesses its place and focuses on its UK business. The supermarket giant said it would receive £165million for the sale of 301 stores, distribution centres and its head office in Poland.
It said it had raised £200million over the past 18 months by either selling or agreeing to sell 22 stores in Poland.
This leaves Tesco’s remaining global presence outside of the UK in Ireland, the Czech Republic, Hungary and Slovakia.
Of the sale, Jeffries analysts said in a note: “Bottom line, Tesco should achieve overall proceeds of £500m for a lossmaking, subscale business.”
Jeffries expected remaining freeholds in Poland to run to another £100million, reported the Financial Times.
Tesco is offloading its Polish business.
It has also exited other countries in recent years.
It has also left the competitive markets of Japan, South Korea, Turkey and the US in recent years.
In March it sold its businesses in Thailand and Malaysia for £8.5billion.
This involved offloading around 2,000 shops to Thai giant CP Group and generated enough for a special dividend for shareholders.
Tesco has seen a boom in sales since the coronavirus shutdown.
It’s under pressure from other budget and online-only retailers.
The Tesco chief executive, Dave Lewis, said: “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 the Czech Republic, Hungary and Slovakia, where we have stronger market positions with good growth prospects and achieve margins, cash flows and returns which are accretive to the group.”
Tesco is facing increased competition in the market. Recently, online-only grocer, Ocado announced it would look to raise money to expand due to demand during the pandemic
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Executives at Tesco have come under fire for pay in recent months.
Mr Lewis has faced criticism in recent months as he was handed a £6.4million paycheck.
This came shortly after the supermarket was awarded a business rates holiday that amounted to £585million.
Shoppers have also been turning to budget alternatives such as Aldi and Lidl as wallets face a squeeze.