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English Section

UK retailer Tesco mulls pulling out of Poland: report

03.10.2019 20:00
British retail giant Tesco is considering selling its Polish unit and withdrawing from the country, a newspaper reported on Thursday.
Image by Alexas_Fotos from Pixabay
Image by Alexas_Fotos from Pixabay pixabay.com/CC0 Creative Commons

The move might mean layoffs for several thousand workers, Poland’s Gazeta Wyborcza newspaper reported.

Tesco operates 345 stores in Poland after it last year shut down 62 outlets in various cities, according to the paper.

The UK retailer came to Poland in 1995 and runs a string of hypermarkets, but the problem is that Polish customers do not want such large stores anymore, Gazeta Wyborcza said.

It added that many people today prefer to do shopping in smaller discount stores close to where they live.

For Tesco, Poland is the largest market in Central Europe, but the retailer has been losing money in the country for several years, according to Gazeta Wyborcza.

This has harmed the financial performance of the entire group, the paper also said.

If it decides to pull out, Tesco will be the first large foreign retail chain to exit Poland in years, the newspaper reported.

(gs)

Source: Gazeta Wyborcza