Tesco is exploring a sale of its Central European operations as the supermarket giant looks to sharpen its focus on the UK and Ireland, according to reports.

The company is understood to be working with bankers to assess options for its business in the Czech Republic, Hungary and Slovakia, the Financial Times reported.

The operations represent Tesco’s only sizeable business outside the UK and Ireland and span 561 stores.

A Tesco spokesperson said: “We never comment on rumour or speculation.”

The potential sale would mark a further retreat from international markets for Britain’s biggest supermarket, which has sold off most of its overseas operations since 2015, including its businesses in South Korea, Thailand and Malaysia.

Analysts have long viewed the Central European arm as something of an outlier within Tesco’s portfolio, as the retailer has increasingly concentrated investment on its home market.

The division generated sales of £4.49bn in Tesco’s 2025/26 financial year, up 3.7 per cent at constant exchange rates. However, adjusted operating profit edged down 0.9 per cent to £115m.

It contributed around four per cent of group profit, with Tesco reporting total profit of £3.15bn on sales of £66.6bn over the year.

Tesco chief executive Ken Murphy previously told shareholders in 2023 that the Central European business was an “integral part” of the group and did not distract management from the core UK operation.

However, any sale would underline the supermarket’s continued push to prioritise its dominant domestic business, where it holds a 28 per cent market share.

Tesco has been investing heavily in price, loyalty and store operations in the UK as it looks to fend off competition from Aldi, Lidl and traditional rivals including Sainsbury’s and Asda.

Its shares have risen 6.5 per cent so far this year.

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