Tesco is set to close its non-food website, Tesco Direct.
A range of general merchandise, such as homeware, technology, toys, and clothing for collection or delivery is sold by Tesco Direct.
A statement that was released by the company said that after a comprehensive review, the supermarket giant has decided that “there is no route to profitability for this small, loss-making part of the business.”
Tesco Direct will stop trading on the 9th of July this year and approximately 500 employees will be at risk of redundancy.
It is assumed that the fulfilment centre located at Fenny Lock, which handles the orders on Tesco Direct, will be shut.
A statement that was made by Tesco stated: “the priority is to support colleagues, and external partners, that will be affected by this change.”
The users who are logging on to the website are given with the following statement: “Tesco Direct is closing on 9 July 2018. It may now take 2-5 days to receive your order. If your order is delayed, our customer service team will contact you.”
The customers are then directed to the frequently asked questions section of the website.
The company has endured a series of significant challenges.
Tesco has had a difficult time with high costs for online marketing and fulfilment which has prevented the company from delivering a sustainable offer as a standalone non-food business.
Tesco says that it started folding the services of Tesco Direct into the central business of the company, with customers shopping on Tesco.com already being able to purchase products such as homeware, cookware, and toys.
The supermarket says that it is the ambition of Tesco to “create a simpler online experience for customers.”
The CEO of Tesco UK & ROI, Charles Wilson, stated: “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.”
He added: “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.”