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Tesco Direct to close putting 500 jobs at risk

PUBLISHED: 15:59 22 May 2018 | UPDATED: 16:51 22 May 2018

Tesco boss Dave Lewis has said business rates have made it difficult for traditional retailers Picture: Rui Vieira/PA Wire

Tesco boss Dave Lewis has said business rates have made it difficult for traditional retailers Picture: Rui Vieira/PA Wire

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Supermarket Tesco will scrap its e-commerce delivery site, putting 500 jobs at risk.

Tesco Direct, which sells non-food and electrical items, will shut on July 9 with a fulfilment centre near Milton Keynes set to close.

The supermarket cited a number of “significant challenges”, including high costs for fulfilment and online marketing, which have prevented it from delivering a “sustainable offer as a standalone non-food business”.

Charles Wilson, Tesco’s UK and Ireland boss, 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.”

Joanne McGuinness, Usdaw national officer, 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.”

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