Žabka included in Ahold Delhaize’s takeover of Tesco’s Czech and Slovak operations

The Czech franchise sector is affected by the announced change of ownership of Tesco’s local operations. Dutch group Ahold Delhaize, which operates Albert, has agreed to buy the British retailer’s Czech and Slovak businesses. The transaction also includes the Žabka network of 113 Czech stores. However, the transfer has not yet been completed: the deal remains subject to regulatory approval, with completion expected in the fourth quarter of 2027.

Žabka franchise stores are also included in the deal

The takeover announced on 30 October 2026 extends beyond Tesco supermarkets and hypermarkets. Tesco’s Charlotte Haney confirmed that Žabka stores are included in the acquisition, according to Czech news outlet Aktuálně.cz. This part of the deal is particularly important for the Czech franchise sector: alongside an extensive network of company-operated stores, the business associated with the franchised outlets is also set to pass to a new owner.

Tesco has 184 stores across various formats in the Czech Republic and also offers online shopping. A further 113 Žabka stores operate alongside this network. These two groups need to be distinguished when interpreting the transaction figures. The Tesco store count alone does not reflect the full Czech footprint of the business being acquired.

Across the Czech Republic and Slovakia, the acquisition covers more than 360 supermarkets, hypermarkets and smaller stores, plus over 100 franchised outlets. This is therefore a broader transaction than a change of ownership for a single Czech brand. The combined figures announced for both countries should not be confused with the number of Czech outlets.

The CZK 41.4 billion valuation includes lease liabilities

The deal is valued at approximately €1.7 billion, or around CZK 41.4 billion, including lease liabilities. This figure covers Tesco’s Czech and Slovak operations as a whole. It is not the price of Žabka alone, nor of the Czech business alone.

Ahold Delhaize announced an agreement to acquire 100% of Tesco’s Czech and Slovak businesses. It already operates nearly 350 supermarkets and hypermarkets in the Czech Republic through Albert. The acquisition is also intended to give it its first foothold in Slovakia. For Tesco, completion would mean leaving the Czech Republic, which it entered in 1996 by acquiring K-Mart department stores.

The financial information reported alongside the deal includes results for Tesco Franchise Stores ČR, the company that operates the Žabka network. According to Aktuálně.cz, it posted a profit of CZK 16.6 million in the latest reported accounting period, compared with a loss of CZK 13 million in the preceding period. Tesco Stores ČR recorded a profit of CZK 387 million for the financial year ending 28 February 2026, following a loss of CZK 488 million the previous year.

These results describe the performance of the companies concerned, not the profitability of individual franchise stores. Anyone considering operating a particular Žabka outlet should therefore not treat them as a substitute for that store’s own financial figures.

Regulatory approval, not the announcement date, is what matters

The company expects the transaction to be completed in the fourth quarter of 2027. This timetable is subject to the usual conditions being met, including regulatory approvals. The announced agreement does not mean that Ahold Delhaize has already taken over the day-to-day management of the network it is buying.

At the time of the announcement, Filip Vrána, spokesperson for the Czech Office for the Protection of Competition, told the Czech News Agency (ČTK) that the authority had not yet received an application for approval of the merger. According to Czech news outlet Novinky, Slovakia’s competition authority and the European Commission are also expected to review the takeover. Their assessments could affect the final shape of the transaction; regulators may require some stores to be sold.

The published store totals should therefore not be treated as the definitive size of the future network. Equally, Žabka’s inclusion in the acquisition is not an announcement that its stores will be rebranded as Albert. Specific changes at individual outlets have not yet been announced.

What franchise partners should watch now

According to published reports, Tesco representatives stressed that nothing would change for customers before the transaction was approved and that Tesco stores would continue trading under their existing brand. Future ownership and current store operations are therefore two separate issues. Žabka’s inclusion in the deal has been confirmed, but no specific new operating model has been announced.

For both existing and prospective franchise partners, the main priorities are to monitor the approval process and subsequent communications about how the network will operate. When discussing a particular outlet, it is important to distinguish confirmed contractual terms from expectations linked to the future owner. Neither the overall acquisition price nor Albert’s size provides a basis for predicting an individual partner’s future costs or returns.

Practical takeaway: Žabka is confirmed as part of the planned takeover, but the change of ownership has not yet been completed. Base any franchise decision on the contract in force, the financial performance of the specific store and information confirmed in writing by the network operator.