CENTRAL EUROPE: Tesco is considering a departure from some countries in the region | Progresiv

British retail company Tesco is considering a departure from some countries in Central Europe, including the Czech Republic and Slovakia, as part of its austerity plan, Slovak daily Sme said today. Tesco's Slovak activities could be sold in a package together with activities in Hungary, the Czech Republic and possibly Poland, the daily said referring to an unnamed British investor familiar with the chain's austerity plan.

Another scenario is the sale of Tesco's entire networks in the individual states. There is also a possibility that Tesco will stay in Slovakia but will sell some of its assets, the investor said.

Tesco has allegedly inquired whether it would find a buyer for its Central European assets. According to the source, however, no decisions have been made yet.

Tesco did not confirm any of the information. Its spokesman Matt Francis told Sme the company would not comment on speculation.

Tesco is introducing austerity measures in Britain in an effort to cope with falling prices and customer numbers. The austerity plan should help Tesco end years of a decreasing market share and resolve problems caused by a financial scandal when the company overstated its profits.

Tesco employs about 14,000 people in the Czech Republic and about 10,000 people in Slovakia. (www.praguepost.com)