Tesco Direct Downfall: sky-scraping online marketing expenses to be blamed?
According to Tesco, increased online marketing costs are to be blamed for the downfall of the Tesco direct website, which has pushed 500 employees under the umbrella of uncertainty.
Tesco was a master in grocery offers but it went one step ahead and entered the pit to face Amazon and Argos by moving to from food products to TVs, Sofas, and games. They launched these programs in 2006 but didn’t sum up enough profit.
Along with Tesco.com, there is a wide range of household goods and a clothing range that will stop its trading ventures from the 9th of July. This will lead to the closing down of a number of distribution centers that were set up to complete the orders.
Tesco UK chief executive Charles Wilson shared his views on the shift from food products to gaming etc by saying “This decision has been a very difficult one to make, but it is an essential step towards establishing a suitable non-food offer and growing our business for the future”
“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”
The cut in the cloth was exercised during the tenure of Dave Lewis, who preferred to cut down a production that was not expected to produce profits and planned to shift all his attention to the grocery business. The production was increased under his predecessor, Sir Terry Leahy.
The creators behind the Tesco Direct website were DigitasLBi
This article is about World Tesco Marketing