Tesco has proposed to cease operations at its Fenny Lock distribution centre following its announcement today that it was terminating its Tesco Direct non-food website.

The DC, located near Milton Keynes, handles online orders from Tesco Direct.

Tesco has confirmed that around 500 employees are at risk of redundancy.

The supermarket said the decision to close Tesco Direct followed a detailed review that concluded “there is no route to profitability for this small, loss-making part of the business”.

It plans to streamline its online offering under the main brand umbrella with all goods ordered in one place.

Tesco Direct will cease trading on 9 July 2018.

Charles Wilson, CEO of Tesco UK & ROI, 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, national officer at union Usdaw, 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.”