Tesco is reportedly working with bankers to review options for its Central European business across the Czech Republic, Hungary and Slovakia, which together operate 561 stores. The Financial Times reported the supermarket giant is evaluating the units as it concentrates investment on the UK and Ireland, where it holds a 28% market share.
The Central Europe division posted £4.49 billion in sales in fiscal 2025/26, up 3.7% at constant currency, though adjusted operating profit slipped 0.9% to £115 million. The unit contributes about 4% of group profit; Tesco reported total profit of £3.15 billion on £66.6 billion of sales. CEO Ken Murphy called the region a part of the group in 2023, but a sale would extend Tesco’s retreat from overseas markets since 2015.
Why it matters for the pet industry
Tesco is a top pet-food and pet-care retailer in its home markets, and its Central European stores are a meaningful pet-care distribution footprint across three fast-growing pet-owning nations. A disposal to a new owner could reset pet-food shelf space, shift private-label pet ranges and reopen buyer negotiations for branded pet suppliers in those countries.
For Western pet brands exporting into the region, a change of ownership raises replenishment and listing risk. A buyer less focused on grocery pet care could shrink pet assortment, pushing local pet owners toward specialist and ecommerce channels.
What to watch
- Which buyer acquires the 561 stores and their pet-care concessions by year-end 2026.
- Whether private-label pet food share shifts under new Central Europe ownership.
- If Tesco reinvests UK proceeds into pet and loyalty price wars.
FAQ
How many Tesco stores are in its European pet food retail business?
Tesco’s Central European business spans the Czech Republic, Hungary and Slovakia with 561 stores, posting 4.49 billion pounds in sales in fiscal 2025/26, up 3.7% at constant currency. The unit contributes about 4% of group profit, while Tesco reported total profit of 3.15 billion pounds on 66.6 billion pounds of sales.
How would a Tesco sale affect pet-food brands?
Tesco is a top pet-food and pet-care retailer, and its Central European stores are a meaningful pet-care distribution footprint across three fast-growing pet-owning nations. A disposal could reset pet-food shelf space, shift private-label pet ranges and reopen buyer negotiations for branded suppliers.
What buyer risk faces Western pet brands in Europe?
For Western pet brands exporting into the region, a change of ownership raises replenishment and listing risk. A buyer less focused on grocery pet care could shrink pet assortment, pushing local pet owners toward specialist and ecommerce channels across the Czech Republic, Hungary and Slovakia.
Source intelligence adapted for the GlobalPetIndex pet-industry audience. Original publication: external brief.
