Netto buys 301 Tesco stores in Poland
Wpis dostępny jest także w języku: polski
On 18 June 2020, Tesco supermarket and hypermarket chain informed about the sale of its business in Poland. The buyer is Salling Group, owner of the retail grocery chain Netto. The transaction comprises 301 shops, distribution centres and headquarter and must be approved by the monopoly authorities.
Tesco sells business in Poland
Dave Lewis, President of the Tesco Group, said that there was a significant improvement in performance in Central Europe, but market challenges in Poland were still being perceived. The sale of Tesco’s Polish business will allow the company to focus on its operations in the Czech Republic, Hungary and Slovakia.
Tesco reported that the total value of the company agreed upon in the transaction is PLN 900 m, and the total net proceeds are expected to be about PLN 819 m. The sale is to be finalised in the current financial year.
In addition, in the last 18 months Tesco has sold or agreed to sell 22 stores. At the same time, the company will try to sell the remaining properties not covered by the transaction, including 19 operating stores.
In the financial year 2019/2020, Tesco Polska generated revenues of GBP 1,368 m ( PLN 6,791 m) and an operating loss before extraordinary costs of GBP 24 m (PLN 119 m).
Rebranding of Tesco stores
Salling Group A/S is the owner of the Netto grocery chain in Poland, which in mid-June 2020 included 386 stores. The transaction will increase the number of Netto stores to nearly 700. Netto is to invest over PLN 1 bn in transforming the current Tesco stores into Netto stores.
In the financial year 2019/2020, the stores covered by the transaction (301 stores) achieved revenues (excluding VAT and fuels) of GBP 947 m (PLN 4 701 m). All of these stores will be rebranded during the 18-month transition period.