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Tesco Direct closure puts 500 jobs at risk

Tesco Direct closure puts 500 jobs at risk

Tesco plans to close its Tesco Direct website that sells general merchandise, putting 500 workers at risk of redundancy.The retailer said the non-food website was a "small, loss-making part of the business" and had "no route to profitability".Tesco said the site faced high delivery and marketing costs that meant it could not work as a standalone business.It will close the Direct site and its distribution centre on 9 July.Charles Wilson, Tesco's UK chief, said the retailer wanted to focus on one website so that customers could buy groceries and non-food items in one place.
"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," he said.Joanne McGuinness, national officer for the Usdaw union, said the decision was devastating news for Tesco Direct staff."Our priorities will be to support, advise and represent our members through this difficult period and to get the best possible deal for them," she said.
Retailing
Companies
Tesco
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