Tesco has announced plans to close its Tesco Direct website putting 500 jobs at risk.
Tesco Direct’s headquarters and Milton Keynes distribution centre are to close on 9 July after the supermarket giant said the site was a “small, loss-making part of the business” that had “no route to profitability”.
Tesco Direct was Tesco’s online retailer for non-grocery items but now the company wants to put all of its products in one place.
Charles Wilson, Tesco’s chief executive, 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.”
Joanne McGuinness, national officer at UNISAW trade union told media: “Our priorities will be to support, advise and represent our members through this difficult period and to get the best possible deal for them.”
The supermarket giant has already began the “refocusing” of its online offering, as customers can now purchase non grocery items such as toys and homeware.