BUDAPEST: Tesco will close 13 shops in Hungary in order to remain profitable for the long term, it said in a statement on Monday. Tesco, which is in a cost-cutting drive, is Hungary's biggest supermarket chain and third-biggest employer.
In Hungary, Tesco and other major retailers were hit with a steep rise in food inspection costs and a new law that would force the closure of loss-making chains after two successive years in the red.
"One of the legislation changes that was put in force is that businesses which are not profitable after two consecutive years must leave the market so it's absolutely essential that we remain profitable to protect our long term future here," Nigel Jones, chief executive said in the statement.
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