Tesco pulls the plug on Tesco Direct

Tesco has chosen to close its non-food website, Tesco Direct, following a review which concluded it had found “no route to profitability for this small, loss-making part of the business”.

The retailer blamed high costs on fulfilment and online marketing which has prevented it from making a success out of its non-food business and it plans to cease trading from 9 July 2018. This will also lead to the closure of its Fenny Lock fulfilment centre, resulting in job losses of around 500, which also includes support colleagues and external partners.

Tesco said it had begun moving some non-food products, including toys, home and cookware, onto Tesco.com. And it will look at opportunities to rebuild this offer on a single online 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.”

Tesco Direct has now been added to a long list of businesses the retailer has decided to part ways with in recent years as it focuses its efforts on competing in the ever- challenging grocery market. Other Tesco businesses include: Giraffe, Harris & Hoole and Blinkbox