1. News
May 23, 2018

Tesco to cease loss-making Tesco Direct business in UK

UK-based grocery chain Tesco is set to cease the business operations of its Tesco Direct, as the company identified it as a loss-making business.

UK-based grocery chain Tesco is set to cease the business operations of its Tesco Direct, as the company identified it as a loss-making business.

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Tesco has taken the decision to create a simpler online experience by offering all the products, including general merchandise, clothing and groceries, in one place.

Tesco Direct is a non-food e-commerce business, which sells a range of general merchandise such as technology, homeware, clothing and toys.

The business has recently faced many challenges due to high costs for fulfilment and online marketing, preventing it from delivering a sustainable offer as a standalone non-food business.

Tesco Direct will not be available for customers from 9 July. It will also close the fulfilment centre at Fenny Lock, which currently handles its orders.

Tesco UK and ROI CEO 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.

“It is an essential step towards establishing a more sustainable non-food offer and growing our business for the future.”

“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.”

The decision will affect approximately 500 jobs across the Tesco Direct business, but the retailer plans to support employees and external partners.

Following the closure, Tesco will sell general merchandise in-store and online at Tesco .com, while focusing on investing in a single online platform.

The retailer’s Uniform Embroidery Service and Tesco Mobile products, which are currently offered on Tesco Direct, will be added to Tesco .com.

Tesco will not make any other changes to its grocery home shopping service as a result of this announcement.

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Identify the trends of tomorrow using filings sentiment analysis

Business sentiment continues to improve, showing a clear recovery since the onset of COVID-19. Sentiment in 2021 was up by 8% compared to 2020.   Consumer industries had the highest sequential filings sentiment growth in Q3 2021. Optimism around digital themes and general outlook drove the positive trend in overall business sentiment.   GlobalData’s Filing Analytics Annual Report 2021 on the Consumer industries provides insights into sentiment and mention trends for companies, geographies, and themes. Get real-time analysis of:  
  • Quarterly & annual reports 
  • Earnings call transcripts 
  • IPO filings 
  • Events presentations 
  • ESG filing trends  
Understand the overall outlook for Consumer and spot the topics and themes that will be most impactful in the next few years.   Download the full report to understand what to expect and how to align your business for success.  
by GlobalData
Enter your details here to receive your free Report.