Tesco tests Premier – the British chain has brought a new brand to Hungary

From Tesco Express to Premier

The store located on Kossuth Street in the capital previously operated under the name Tesco Express, but has now been renovated and reopened under a new brand. Although at first glance it is just a transformation, in fact a market test has begun: based on customer feedback, it may be decided whether it is worth introducing the Premier brand more widely in Hungary.

What is Premier?

Premier has been part of the Booker Group franchise network in the United Kingdom for years, which belongs to the Tesco Group. The brand, which is specifically optimized for urban, residential corner stores, represents local stores with a central logistics background. The range focuses on everyday needs: staple foods, fresh goods, drinks, ready-made meals and household items are on the shelves.

Compared to Tesco Express, Premier offers more of a “local store” experience, is less premium, has a more direct atmosphere, and is often operated by franchise partners abroad.

Why did Tesco move in now?

In recent years, the domestic retail sector has been hit by special taxes, price controls and the advance of discount chains – especially Lidl. Although Tesco remains strong in hypermarkets, it has fallen behind in the urban convenience market. The introduction of the Premier brand in Hungary could provide an answer to this challenge.

According to Tesco, the Premier store on Kossuth Street opened “using the experience in England”, relying on Tesco’s logistics and IT background, but with a selection tailored to local needs and new visual elements.

Against discounts, with a franchise opportunity

The domestic appearance of Premier could not only mean a rethinking of Tesco Express, but also the introduction of a franchise model. This could give local entrepreneurs an opportunity to get involved, while Tesco could build a network with less risk and faster.

This model could fit the Hungarian urban environment: customers often prefer more direct, “corner store”-type units to a convenience store with a larger international brand.

What does Tesco say?

According to the company, the purpose of the test is to assess how Hungarian customers react to the new brand. “We will decide on further options based on customer feedback and experience”, they said.

Tesco also indicated that the Premier network operates in Great Britain with an “exciting selection, youthful and vibrant color scheme”, and now they are giving Hungarian customers the opportunity to try the model.

One ​​store does not yet mean the future – but it can show the direction

The opening of the Premier in Csepel will not change the market in itself, but it is of great importance as a strategic test. If customer reception is favorable, it is possible that Tesco will convert several Express stores to Premier, and even lay the foundations for a completely new convenience store network in Hungary.