Tesco Hungary streamlines supply chain

Szigetszentmiklós, Hungary: Tesco is to centralise its supply chain in Hungary by consolidating all warehousing into a single, large-scale distribution hub.

Tesco will use its new 100,000-sq metre logistics centre in Hungary – built by European industrial property company CTP – which is now operational.

The coldstore is on a 60-hectare site near Szigetszentmiklós and will improve Tesco’s supply chain efficiency and reduce its carbon footprint.

The warehouse has cold storage, dry-goods storage, and support facilities. It will fully service all Tesco stores in Hungary from March 2025. Improved local road infrastructure is also part of the project.

This sustainable logistics centre uses renewable energy from 8,620 solar panels (3.75 MW), achieving an A energy rating and targeting BREEAM certification. Tesco projects an 830-tonne annual reduction in transportation CO2 emissions, due to the centre’s design.

Zsolt Pálinkás, chief executive, Tesco Hungary, said, “We are very pleased to take possession of our new domestic logistics centre, which is a huge milestone in the history of Tesco in Hungary. The retail sector has undergone significant transformation in recent years, with home delivery services, innovation and sustainability becoming increasingly important.

“With this environmentally conscious logistics centre, equipped with the most modern technologies, we are better prepared to meet new demands while making progress toward carbon neutrality by 2035.”