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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.