For decades, the Tesco chain has been a familiar part of the Slovak retail landscape, but that may soon change. The Dutch group Ahold Delhaize is acquiring all Tesco stores in Slovakia and the Czech Republic. This deal could make it the leader in the Czech market, raising concerns about rising prices. Let’s take a look at what this means for shoppers in Slovakia.
What happened, and who is the new owner?
The Dutch company Ahold Delhaize, which owns the Albert supermarket chain in the Czech Republic, announced on October 30 that it was acquiring Tesco’s business in Slovakia and the Czech Republic. The deal is valued at approximately 1.2 billion euros, or 1.7 billion when lease obligations are included.
The new owner will acquire:
- more than 360 supermarkets, hypermarkets, and convenience stores;
- more than 100 franchise stores;
- offices and distribution centers, including those in Prešov and Beckov.
For the British group Tesco, this sale is part of a strategy to focus on the markets of the United Kingdom and Ireland.
The name Ahold is not new to Slovakia. The group has been operating here since 2001, managing the Hypernova and Albert chains, but sold its Slovak business in 2014. Now it is returning, but on a much larger scale.
Why are people in the Czech Republic worried about rising prices, but not in Slovakia?
The deal has caused the most concern in the Czech Republic. There, Ahold Delhaize already owns the large Albert chain, and after the merger with Tesco, it will become the largest player in the market, surpassing Lidl and Kaufland. Economists fear this could lead to reduced competition, especially in smaller cities where Albert and Tesco were direct rivals. Less choice for shoppers could mean higher prices.
The situation in Slovakia is radically different. Unlike in the Czech Republic, Ahold Delhaize does not currently have any stores there. Therefore, this is not a merger of two competitors, but a change in ownership of one of the market’s largest players.
The Antimonopoly Committee of the Slovak Republic (Protimonopolný úrad SR) notes that Tesco is the third-largest retailer in the country and that there is a sufficient level of competition in the market. Since the number of major chains will not decrease, no significant impact on consumer prices is expected.
How prices could rise even if price tags remain unchanged
Experts warn that potential price increases aren’t always visible on price tags. Retail chains may use hidden methods to raise the average check:
- reducing the number of promotional offers;
- offering less generous discounts;
- deteriorating terms of loyalty programs, such as Tesco’s popular Clubcard.
On the other hand, a larger company has a stronger negotiating position with suppliers, which can lead to lower purchase prices. If these savings are passed on to shoppers, prices in stores may even go down. However, in cities with weak competition, there is nothing forcing retailers to share these savings with customers.
What will happen to the stores, and when can we expect changes?
The deal still needs to be approved by regulatory authorities. The process is expected to be completed in the fourth quarter of 2027. Until then, all Tesco stores will continue to operate as usual under their current brand names.
It is not yet known whether the Slovak stores will be renamed Albert. Ahold Delhaize has not officially confirmed such plans but has stated its intention to become “a major player in the Slovak market with a leading brand.” This could mean either retaining the Tesco name or a complete rebranding in the future.
