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Tesco to refocus non-food business by closing Tesco Direct

Tesco has announced plans to close its Tesco Direct non-food website after a review found there was no route to profitability for the loss-making business.

GENERAL MERCHANDISE

Tesco to refocus non-food business by closing Tesco Direct

Tesco has announced plans to close its Tesco Direct non-food website after a review found there was no route to profitability for the loss-making business.

The move will put 500 jobs at risk.

In a statement, Tesco said the business had faced a number of challenges including high costs for fulfilment and online marketing, both of which had prevented it from becoming a sustainable standalone non-food business.

While Tesco Direct will cease trading on 9 July 2018, Tesco is also looking to close its Fenny Lock fulfilment centre which handles Tesco Direct orders.

The retailer said it wants to create a simpler online experience for customers to enable them to purchase general merchandise, clothing and groceries all in one place.

Charles Wilson, chief executive 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.”

Tesco Direct sells a range of general merchandise, including technology, homeware, clothing and toys for delivery or collection.

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