Lidl owner Schwarz Group is among a string of grocery giants circling Tesco’sCentral European operations as it pushes ahead with a potential exit from the region.

The German retail group, which owns both Lidl and Kaufland, is expected to make an offer for Tesco’s Czech and Slovakian businesses.

Ahold Delhaize, which operates the Albert supermarket chain in the Czech Republic, and Biedronka, owned by Portuguese retail giant Jerónimo Martins, have also been linked to the sale process.

Tesco is understood to be planning to sell its Czech and Slovak operations separately from its Hungarian business, with initial bids expected by the end of September.

It is working with Goldman Sachs and Citi on the potential disposal. Tesco, Schwarz Group and the other prospective bidders have declined to comment on the process.

Retail Gazette reported in July that Tesco was exploring a sale of the division, which represents its only sizeable operation outside the UK and Ireland.

The grocer operates 561 stores across the Czech Republic, Hungary and Slovakia and employs more than 22,000 people in the region.

Its Central European arm generated £4.49bn in sales during its 2025/26 financial year, up 3.7 per cent at constant exchange rates, although adjusted operating profit slipped 0.9 per cent to £115m.

The division contributed less than four per cent of Tesco’s £3.15bn group adjusted operating profit during the year.

A sale would mark the latest step in Tesco’s long-running retreat from international markets as it concentrates investment on its core UK and Ireland operations.

It has disposed of the bulk of its overseas empire over the past decade, including its businesses in South Korea, Thailand and Malaysia.

Tesco has instead ramped up investment in its home market under chief executive Ken Murphy, focusing on price, loyalty through Clubcard and its store estate as it battles traditional rivals and discounters including Aldi and Lidl.

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