Supermarket giant Tesco has agreed in principle the sale of its 300-plus strong Polish business and associated distribution centres and head office.

The grocer announced it had reached an agreement with Danish retail giant Salling Group for the sale of all 301 Tesco stores and associated infrastructure in Poland for £181m this morning.

Over the past 18 months Tesco has been looking to exit Poland, having sold or agreed to sell a further 22 stores for net proceeds of approximately £200m and is looking to sell a further 19 stores currently not trading.

Outgoing Tesco chief executive Dave Lewis said the sale was result of continued market challenges in Poland, and would allow the grocer to focus on its businesses in the Czech Republic, Hungary and Slovakia.

“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 Czech Republic, Hungary and Slovakia, where we have stronger market positions with good growth prospects and achieve margins, cashflows and returns which are accretive to the group.

“I would like to thank all of our Tesco Poland colleagues for their dedication to serving customers in Poland over many years. The energy and commitment they have shown over the past two years transforming Tesco Poland to a two-format business has been incredibly impressive. We see this transaction as the best way to secure the future of the business for our colleagues and customers in Poland”.

The sale marks the latest international exit for Tesco, which under Lewis has made no secret about focusing on its home market.

Tesco agreed to sell its Thai and Malaysian businesses in March 2020, having completed the sale of its Chinese business in February this year.

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