Non-food website will cease trading on July 9 after facing ‘significant challenges’.
Tesco is refocusing its non-food business, with Tesco Direct set to cease trading on July 9.
The retailer said in a statement that, despite its best efforts, ‘there is no route to profitability for this small, loss making part of the business’.
Tesco Direct has faced a number of significant challenges including high costs for fulfilment and online marketing, which have prevented it from delivering a sustainable offer as a standalone non-food business.
The fulfilment centre at Fenny Lock which handles Tesco Direct orders will be closed, with 500 job roles at risk of redundancy across the business.
Tesco said that its ambition is to ‘create a simpler online experience’ for its customers, allowing them to purchase general merchandise, clothing and groceries all in one place.
Customers can already find products including toys, home and cookware on Tesco.com, with opportunities to selectively build this offer being made as investment is focused on a single online platform.
Charles Wilson, ceo of Tesco UK & ROI, explained: “We want to offer our customers the ability to buy groceries and non-food products in one place and that’s why we are focusing our investment into one online platform.
“This decision has been a very difficult one to make, but it is an essential step towards establishing a more sustainable non-food offer and growing our business for the future.”
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