Analyst View Tesco in Poland: Can it Achieve a Turnaround?
Tesco has achieved an impressive turnaround in its UK business, but one market remains the thorn in its side — Poland. The group has closed unprofitable stores, centralised its management across CEE and continues to work on its cost base. However, the discount sector dominates, accounting for 30.4% of the market in 2018 and a projected 33.2% by 2023. Lidl and Biedronka and even smaller convenience operators are chipping away at Tesco’s market share.
As store closures continue, we look at why Poland is such a challenging market for Tesco. Also, learnings that the retailer might apply from the UK, where it also faces into aggressive discounter competition. If Tesco makes a success of Jack’s in the UK, might this be a perfect format to export to Poland?