Tesco closes non-food website, tesco direct

Tesco is to close its clothing and homewares Tesco direct website in a surprise move that puts 500 jobs at risk.

Employees were informed on Tuesday Afternoon about the decision to close the loss-making site, which was attempt by the supermarket giant to take on Argos and Amazon, selling everything from sofas to TVs and toys.

Tesco admitted it could not see a way to make a website, which was launched in 2006, profitable. As a result, the seller said approximately 500 employees, who are under threat of reduction.

“This decision was very difficult, but it is an important step towards creating a more sustainable food supply and growth of our business in the future,” said Charles Wilson, who recently assumed the post of boss of tesco in the UK services. “We want to offer our customers the opportunity to purchase food and non-food items in one place, and why we focus our investments in the online platform.”

Tesco operates two separate Internet business in tandem: Tesco.com to deliver products home direct catalogue-style website of home goods and clothing, including its own brand f&F.

Tesco said the website, which will cease trading on July 9, struggled with the high cost of order fulfillment and Internet marketing. Tesco said that the plan will mean the closure of the distribution centre in fenny lock, Milton Keynes, which manages Tesco orders.

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Tesco Direct was one of many pushing started during the expansionist reign of sir Terry Leahy, the retailer became a master of all trades, with projects that included the construction of an apartment, works in a Bank, and the sale of food, clothing, and household goods online.

The current boss Dave Lewis, who led after the accounting scandal 2014, has led a radical restructuring of the UK’s largest retailer. He sold a number of businesses, including South Korea, features of the homeplus store for $ 4 billion, and pushed through a program of large-scale domestic job losses.

Last year Lewis made his first major deal with the purchase of Booker cash & carry network, Sid Wilson, for $ 3.7 billion to the Complexity of bashing together two companies that have a collective turnover of about £60 billion, means a loss ratio of direct business was a headache no Executive needed.

“I think it shows focus on the machine that is Tesco,” said Steve dresser, retail analyst at grocery insight. “The days of going after markets that are not realistic of them, adding the values long gone.”

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