Tesco to shutter non-foods website
Tesco Direct is shutting down.
Following a “detailed review,” U.K.-based supermarket giant Tesco is closing its non-food website, Tesco Direct, as of July 9. In addition, the company will also close the fulfillment center which handles the shipment and pick-up of Tesco Direct orders. All orders feature a range of general merchandise, including technology, homeware, clothing and toys.
The closure will impact approximately 500 employees.
Tesco blames the closure on a number of factors, including high costs for fulfillment and online marketing. Both issues have prevented the company from delivering a sustainable offer as a standalone non-food business, according to the company.
Despite multiple efforts, Tesco said “there is no route to profitability for this small, loss-making part of the business.”
Tesco already features some general merchandise items, such as toys, home and cookware, on its grocery e-commerce site, Tesco.com, and in-store. Tesco will continue building its non-foods offering online, a move that will give its shoppers one location to buy all merchandise, according to the company.
"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.”
The company will continue to offer its Uniform Embroidery Service and Tesco Mobile products, two services that are currently available on Tesco Direct, on its online grocery home shopping site.
Following a “detailed review,” U.K.-based supermarket giant Tesco is closing its non-food website, Tesco Direct, as of July 9. In addition, the company will also close the fulfillment center which handles the shipment and pick-up of Tesco Direct orders. All orders feature a range of general merchandise, including technology, homeware, clothing and toys.
The closure will impact approximately 500 employees.
Tesco blames the closure on a number of factors, including high costs for fulfillment and online marketing. Both issues have prevented the company from delivering a sustainable offer as a standalone non-food business, according to the company.
Despite multiple efforts, Tesco said “there is no route to profitability for this small, loss-making part of the business.”
Tesco already features some general merchandise items, such as toys, home and cookware, on its grocery e-commerce site, Tesco.com, and in-store. Tesco will continue building its non-foods offering online, a move that will give its shoppers one location to buy all merchandise, according to the company.
"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.”
The company will continue to offer its Uniform Embroidery Service and Tesco Mobile products, two services that are currently available on Tesco Direct, on its online grocery home shopping site.