...and it’s the end of the road for Tesco Direct

TESCO has put 500 jobs at risk after announcing plans to axe its general merchandise website Tesco Direct.

The high street giant said the non-food website was a “small, loss-making part of the business” and had “no route to profitability”.

Tesco Direct will cease trading on July 9 and the group will also close its distribution centre in Milton Keynes.

Tesco chief executive Charles Wilson 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.” However, Joanne McGuinness, of the Usdaw union, said: “This is devastating news for Tesco Direct staff.

“Usdaw officials and senior reps will now enter into consultation talks with the company where we will look closely at the business case for the proposed closure. Our priorities will be to support, advise and represent our members through this difficult period and to get the best possible deal for them.”

Tesco Direct sells general merchandise, including homeware, toys and clothing for collection or delivery.