Tesco invests in the Czech Republic

Tesco continues to invest in the Czech Republic: The British retail group Tesco reportedly plans to step up its expansion in the Czech market, according to the Austrian Handelsblatt.

Tesco: Expanding in the Czech Republic through acquisitions?

Tesco appears to be planning to strengthen its position in the Czech Republic by acquiring around 130 supermarkets and discount stores belonging to the supermarket chains “Zabka” and “Krone,” which are owned by the Penta financial group. The “Zabka” supermarket chain is apparently to continue operating under its existing brand, managed by franchisees. Tesco, by contrast, will completely restructure the “Krone” stores and position them in the Czech market under the “Tesco Express” name. The Austrian Handelsblatt also reported that the purchase price for “Zabka” and “Krone” is around 40 million euros. The only remaining step is for the Czech competition authority to approve the acquisition as a final matter.

Tesco: A long-standing presence in Czech retail

The British retail group has many years of experience in the Czech market. Tesco has been present there since 1996. It currently ranks third among retail companies in the Czech Republic, with more than 150 supermarkets and six department stores, and reported sales of around 46.5 billion koruna.

The Czech market is considered one of the most attractive retail markets with rapid growth among the former Eastern Bloc countries—so it is no surprise that the British retail group Tesco wants to strengthen and expand its retail operations in the Czech Republic by acquiring the “Krone” and “Zabka” supermarket chains.