Tesco has announced that it will be shutting down Tesco Direct, its online storefront for non-food items, on July 9.
Tesco will be putting its efforts toward its main grocery services, found at Tesco.com, and may be adding some non-food items to the sites offerings in the near future. However, Tesco Direct as we know it will soon cease to exist, a move which has put 500 workers at risk of redundancy due to the closure of Tesco Direct's site and the Fenny Lock distribution centre.
The closure is down to high costs for both online marketing and order fulfillment. This saw prices high to compensate and affected the ability to operate a profitable business.
While Tesco Direct was the supermarket giant's centralised service for online deliveries, Tesco.com instead routes orders through local large stores. Speaking to MCV, a spokesperson from Tesco's press office confirmed that this decentralised approach means that a small selection of video games are already available online, as long as they're carried in the individual stores.
The Tesco.com website already serves around 100,000 customers daily. In a press release, it's claimed: "Tesco remains committed to bringing a compelling range of general merchandise to its customers, both in-store and online at Tesco.com. It is Tesco’s ambition to create a simpler online experience for customers, allowing them to purchase general merchandise, clothing and groceries all in one place."
Tesco's UK boss Charles Wilson adds: "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."