Tesco has agreed to sell its businesses in the Czech Republic and Slovakia to Dutch supermarket giant Ahold Delhaize for €1.7bn (£1.5bn). The sale marks Tesco’s latest retreat from the global expansion it pursued in the 2000s.

Tesco’s chief executive Ken Murphy thanked colleagues in the Czech Republic and Slovakia and said that the sale forms part of an increased focus on Tesco’s UK and Ireland operations.

“For Tesco, the transaction will further simplify the Group, increasing our focus on our core UK and Irish businesses and supporting our continued investment in our food-first retail ecosystem and the capabilities that will drive future growth, while enabling a further return of capital to shareholders,” he said.

“Until the transaction completes, our businesses in the Czech Republic and Slovakia remain part of Tesco and our priority remains to continue serving customers and supporting colleagues.”

In 2007, then-Tesco boss Sir Terry Leahy declared that Tesco was going to be “one of the few successful international retailers” as it looked overseas for growth. By 2011, it had expanded to 13 countries but its UK and online presence was struggling.

Tesco also discovered that catering to local markets is not a case of simply applying the successful British model. In places such as China, for example, local grocers are better placed to cater to local tastes, whereas in Eastern Europe, the market is deeply discount-heavy, according to reporting by the Guardian.

In 2012, Leahy’s successor Philip Clarke announced that the company was going to pull out of its loss-making business in the USA, which was swiftly followed by a retreat from China.

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