Tesco will disappear from Poland in November, informed Netto Polska, the owner of which has taken over part of Tesco’s Polish business. The sale of real estate that is not the subject of the transaction is in progress. Most of the outlets will, however, continue to operate under the Netto brand.
As recalled in the Netto announcement, in March 2021, by the decision of the Office of Competition and Consumer Protection (UOKiK), the transaction of purchasing a part of Tesco’s Polish business by Salling Group, the owner of, among others, Net networks. It was then that the process of converting Tesco stores to the Netto format began, and the first stores were opened at the end of May after changing the sign to Netto.
Tesco stores will turn into Netto stores
According to Netto, after more than 25 years on the Polish market, Tesco will definitively cease operating activities, and Tesco stores will be open until October 31, 2021. “After that date, most of them will continue the conversion process to the Netto format,” it said.
Netto said that nearly 80 Netto stores were opened to replace Tesco in three months from the opening of the first stores after the conversion. The chain expects that this year will end with nearly 200 Netto stores in place of Tesco, and after the conversion process is completed, Netto will reach over 700 stores throughout Poland.
As stated, in connection with the decision to end Tesco’s operations in Poland, all processes resulting from the operations of the British chain are currently being phased out. Agreements with business partners are terminated, and the sale of real estate that is not the subject of a transaction with the Salling Group is in progress. The goal is to close as many business areas as possible by October 31 this year. On this day, all Tesco stores will end their operations – both those whose conversion is planned after this date and those that will not undergo the transformation.
According to Netto, their employees will be covered by the training process until all converted Netto stores are launched. During this time, according to the schedule, the reconstruction of the branches will take place. As of November 1, the distribution centers in Gliwice and Teresin acquired by Salling Group from Tesco will serve only Netto stores.
Consent to take over Tesco
The President of UOKiK informed about the approval of the takeover of Tesco Polska by Salling Group – the owner of Netto stores – in March 2021, considering that the concentration will not lead to a restriction of competition.
The Office indicated that there were approximately 1,100 discount stores operating under the Netto brand in Denmark, Germany and Poland, of which 386 in our country. In turn, Tesco Polska owned a chain of hypermarkets and supermarkets with 320 stores, two distribution centers and 23 petrol stations. 301 stores, 14 petrol stations, headquarters and distribution centers were the subject of concentration.
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