Tesco to downsize in Poland

Date : 05 August 2019

Tesco Poland is restructuring its operations in Poland to focus on its best performing smaller store formats. This will see the retailer, as part of a three-year transformation programme, sell eight of its largest hypermarkets and downsize other stores.

Tesco will sell eight hypermarkets…

Tesco is finalising the sale of hypermarkets in Bydgoszcz (ul. Torunska), Gdynia (ul. Nowowiczlinska), Gorzów Wielkopolski (ul. Slowianska), Piastów (ul. Tysiaclecia), Rzeszów (al. Powstanców Warszawy), Tychy (ul. Towarowa), Warsaw (ul. Fieldorfa) and Zary (ul. Broni Pancernej). The retailer also said it will not renew its leases for ul. 1- go Maja in Sosnowiec and on ul.Wolska in Warsaw. The closure of the stores follows Tesco’s decision to shutter 62 stores in Poland during its 2018/19 financial year.

…As it downsizes stores

From August 2019, Tesco will convert its remaining hypermarkets to smaller compact stores. Matt Simister, Tesco’s CEO for Central Europe, said, “Our decision to focus on smaller stores reflects the changing needs of Polish customers as the market evolves.” The move will introduce cost efficiencies and offer shoppers lower prices, helping it to compete with discounters.

…And simplifies ranges

In addition, Tesco is optimising its assortment to make its stores easier for shoppers to navigate and for staff to manage. Food ranges will be standardised in its compact hypermarkets and supermarkets.

The retailer has removed unprofitable assortments to focus on 600 basic food products, which it marked as Starlines, and promoted under the Nasz Cena (Our Price) tagline. The range’s prices have been permanently lowered to improve the price-quality ratio and to support Tesco’s aim to become more price competitive.