Tesco Direct closing down: Supermarket scraps online shopping site

Tesco has revealed plans to close down its loss making website, Tesco Direct.

The closure, which puts 500 jobs at risk, came as the Tesco group said it could not be made profitable as an independent company.

The website sold clothing and home ware, not food, and was the supermarket giant’s attempt to take on Amazon.

Now they will aim to combine all online sales, including items previously sold on Tesco Direct, on Tesco.com.

Closure: The company said Tesco Direct will shut down in July (Getty Images)
Closure: The company said Tesco Direct will shut down in July (Getty Images)

Will Tesco Direct still be taking orders?

The supermarket chain will still be taking orders up until 9 July 2018 and while stocks last.

However order points in store will be closed immediately.

It also says that they will be unable to offer next-day delivery and orders will now take around 2-5 days to arrive.

Tesco says anyone who has pre-ordered a game which is set to be released after that date that will be issued a refund.

"Tesco has conducted a detailed review of Tesco Direct...and has concluded that, despite its best efforts, there is no route to profitability for this small, loss-making part of the business," the company said.

Tesco UK boss Charles Wilson said the decision was "a very difficult one to make" but an "essential step towards establishing a more sustainable non-food offer and growing our business for the future”.

“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.”

The group said Tesco Direct will cease trading on July 9 and, as part of this, the intention is to close the distribution centre which handles the website's orders.

It said the decision means 500 workers across the business will be at risk of redundancy.

The announcement was made just hours after it was revealed that Marks and Spencer would be closing down 100 of its stores in the next four years.

The retail giant said the closures were part of a 'vital' redevelopment.