TESCO have announced plans to scrap its non-food website Tesco Direct, putting at least 500 jobs at risk.
The company is due to close the website on July 9, alongside its Fenny Lock distribution centre in Milton Keynes, where around 500 staff are currently employed.
A number of retailers have been entering into CVA’s in an attempt to save on costs and avoid going into administration. Some industry experts claim that the closures and job losses in some of the major retail outlets are as a result of consumers switching to online shopping. This announcement by Tesco goes against that analysis
The United Kingdom had the third largest e-commerce market in the world in 2015. The most recent UK governmental figures placed the value of UK e-commerce sales at 533 billion British pounds in the same year. Estimates put the value of online retail sales in the United Kingdom at 60 billion euros in 2016, while net sales of the biggest online retailers in the UK added up to more than 80 billion U.S. dollars in 2017.