Ahold Delhaize’s acquisition of Tesco’s businesses in Czechia and Slovakia will add more than 360 company-operated supermarkets, hypermarkets and convenience stores, alongside over 100 franchise locations. The businesses generate approximately €3.5 billion in annual sales, with Ahold Delhaize paying around €1.2 billion for the operations. Subject to regulatory approval, the transaction is expected to complete in the fourth quarter of 2027. 

It was first reported that Tesco was considering selling its Central European businesses in July. Since then, Ahold Delhaize, Schwarz Gruppe, and Jeronimo Martins’ Biedronka banner have emerged as potential buyers. Of these retailers, Ahold Delhaize’s existing network in Czechia aligns best with Tesco’s store formats. 

At present, there has been no announcement concerning Tesco’s estate of 196 stores in Hungary. However, a further sale of its Hungarian network would support its aims to recentre its operations on its core businesses in the UK and Ireland. 

Outlook for the Czech and Slovak markets 

In Czechia, Ahold Delhaize can build on its established Albert business, which already operates 349 supermarkets and hypermarkets. Combining Albert and Tesco is expected to create the country’s leading grocery retailer by market share, while Tesco’s convenience estate allows Albert to extend into smaller proximity formats and serve more frequent, top-up shopping missions. Albert’s experience of integrating and remodelling acquired store portfolios should also support the conversion of Tesco’s network. 

Czechia’s grocery market is becoming increasingly dominated by discounters, with shoppers highly value-conscious. This will lead to a decline in market share of the convenience, supermarket, and hypermarket channels in the coming years. By acquiring Tesco, Ahold Delhaize will gain a wider, more diverse presence and larger buying scale. This can help it to compete with Lidl and Rewe Group, which are set to gain market share. 

Slovakia may prove more challenging because Ahold Delhaize does not currently have a retail presence or established local banner in the market. It will need to build local infrastructure and customer understanding while determining how Tesco’s brand, stores and proposition should develop. However, the acquisition gives the group immediate scale and a leading market position, supported by Tesco’s existing local teams and expertise. 

Opportunities for Ahold Delhaize and suppliers in the region 

Across both markets, Ahold Delhaize can draw on its extensive private label capabilities to strengthen differentiation, improve value and align the acquired ranges more closely with its wider European offer. This could also create opportunities for Czech and Slovak suppliers, particularly where the retailer looks to expand locally sourced ranges and give successful local products access to a broader network. Ahold Delhaize has said that the transaction will strengthen sourcing capabilities and combine its European scale with the local expertise of the Tesco and Albert businesses. 

The acquisition could also reshape relationships with major branded suppliers. Ahold Delhaize participates in Eurelec, which negotiates European purchasing conditions with large international FMCG manufacturers, as well as AMS Sourcing and Coopernic. This gives the group access to greater international purchasing scale and could lead multinational A-brand suppliers in Slovakia to reassess how they manage negotiations and routes to market.  

Tesco’s focus turns to its core markets of the UK and Ireland  

Whilst Tesco’s CEE business remains profitable, with £115 million of adjusted operating profit from £4.5 billion of revenue in its 2025/26 financial year, this represented just 4% of Tesco Group’s £3.15 billion profits.   

The announced sale marks the beginning of the end for Tesco's 30-year presence in Central Europe, following its entry into Hungary in 1995. With the sale of its operations in Hungary likely to follow in the near future, Tesco will have completed its transformation from an international retailer into a business focused on its strongest markets of the UK and Ireland. 

The timing is instructive, coming just months after Tesco introduced its new five strategic ambitions which form its food-first retail ecosystem: winning in food, meeting more everyday customer needs, becoming the most strategic partner for suppliers, deepening customer personalisation and delivering long-term business sustainability. 

Winning in food sits at the beginning of that ecosystem and remains strongest in the UK and Ireland, where Tesco benefits from market-leading scale, a highly engaged Clubcard shopper base and growing capabilities across areas such as retail media, Tesco Marketplace and quick commerce. 

Exiting Central Europe gives Tesco greater scope to concentrate capital, leadership attention and investment behind its core markets. In doing so, Tesco is doubling down on the shopper trust, shopping frequency and data advantages that underpin its wider ecosystem strategy, further strengthening the foundations of its long-term growth in the UK and Ireland. 

Keep up to date with IGD’s insights and coverage of Tesco and Ahold Delhaize.