Tesco Direct to close

The non-food arm of grocery giant Tesco, Tesco Direct is to cease trading as of the 9th July. 500 jobs will be lost including those at the Fenny Lock distribution centre that fulfils orders from the Tesco Direct website.

In a statement, the company said: “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.”

It is estimated that around 500 jobs are at risk from the closure of Tesco Direct. Meanwhile, Tesco will focus on its main online platform at tesco.com.

Charles Wilson, CEO of Tesco UK & ROI, commented: “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.”