Tesco has announced plans to close its non food website, Tesco Direct, on 9 July 2018. Tesco Direct sells a range of general merchandise, including technology, homeware, clothing and toys for delivery or collection. Approximately 500 jobs across the business will be at risk of redundancy.
Tesco Direct has faced a number of significant challenges, including high costs for fulfillment and online marketing, which have prevented it from delivering a sustainable offer as a standalone non-food business.
Tesco have stated that: “Despite its best efforts, there is no route to profitability for this small, loss-making part of the business. despite its best efforts, there is no route to profitability for this small, loss-making part of the business.”
Charles Wilson, CEO of Tesco UK & ROI, said: “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.”
The announcement comes on the same day as Marks and Spencer announced the closure another 14 stores, bringing the total to 100 set for closure.