Tesco has announced that Matt Simister, CEO of its Central Europe division, will leave the retail giant after three decades of service. The decision marks a pivotal moment for the company’s international operations, particularly in a region that continues to play a strategic yet evolving role in Tesco’s global portfolio.
What is Tesco Central Europe?
Tesco Central Europe encompasses the company’s retail operations across Hungary, the Czech Republic, and Slovakia. The division is a significant contributor to Tesco’s international footprint, accounting for roughly 7% of the group’s overall revenue. Despite recent restructures and divestments in other regions, Central Europe has remained integral to Tesco’s international strategy, offering a relatively stable environment for retail expansion and innovation.
As of early 2024, Tesco operated approximately 550 stores in the region:
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Hungary: 197 stores
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Czech Republic: 184 stores (including 119 franchised)
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Slovakia: 169 stores
Tesco has tailored its offer in Central Europe with an emphasis on local sourcing, neighbourhood convenience, and a hybrid model of company-owned and franchised stores. The Czech Republic, in particular, has embraced Tesco’s franchising approach, which has allowed the brand to grow efficiently while sharing operational responsibilities with local partners.
Global Footprint: Tesco Beyond the UK
While the UK remains Tesco’s primary market, the company continues to operate a significant number of stores overseas. Tesco now has over 3,100 international stores, employing a mix of direct ownership, joint ventures, and franchise partnerships.
Key highlights include:
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Ireland: Approximately 148 stores, operating under the Tesco brand.
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India: A joint venture with Tata Group under the “Star Bazaar” name.
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Pakistan: Tesco products are sold through a wholesale partnership with Alpha Supermarkets.
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Spain, Portugal, Gibraltar: Tesco supplies goods to outlets operating under “The Food Co.” banner.
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China (historically): Tesco entered a joint venture with China Resources Enterprise, merging into the Vanguard brand.
Over the past few years, Tesco has scaled back from more volatile or less profitable markets, exiting Poland, South Korea, Thailand, and Malaysia. These moves reflect a deliberate shift toward consolidating efforts in regions where the brand is already well-established or can build stronger, more predictable margins.
A Legacy of Leadership
Matt Simister’s departure comes at a time when Tesco is reassessing its priorities in an increasingly competitive and price-sensitive European retail environment. Simister has been with Tesco for 30 years, holding numerous roles including Group Food Sourcing Director before taking on the CEO role in Central Europe. During his leadership, Tesco adapted its Central European strategy to better meet consumer needs, invested in digital retailing, and aligned its store portfolio to maximise efficiency.
He is widely credited with modernising operations and fostering collaboration across borders, especially in areas like supply chain optimisation and private-label product development. His exit signals the end of an era and the likely beginning of further transformation within Tesco’s European division.
What’s Next?
As Tesco looks to the future, the company will be tasked with selecting a successor capable of navigating the unique regulatory, economic, and cultural landscapes of Central Europe. Analysts expect continued focus on e-commerce integration, franchise expansion, and balancing affordability with profitability in a region that, while stable, remains highly competitive.