Supermarket giant Tesco has announced the closure of its non-food e-commerce business Tesco Direct, after concluding there is “no route to profitability for this small, loss-making part of the business”.
Tesco Direct, which sells clothing, homewares and toys among other products, will cease trading on 9 July. The move places 500 jobs at risk and will also include the closure of the fulfilment centre at Fenny Lock, which handles Tesco Direct orders.
Tesco has said it will instead offer “a compelling range of general merchandise to its customers, both in-store and online at Tesco.com“, adding that it wanted to offer a simpler online experience for customers, allowing them to purchase general merchandise, clothing and groceries all in one place.
Customers can already buy toys, home and cookware and the retailer said it would “selectively” build on this offer as investment is made in the single platform.
“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,” said Charles Wilson, CEO of Tesco UK & ROI.
“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,” he added.