Tesco (LON:TSCO) has announced its decision to shut its clothing and homeware site Tesco Direct, after the group admitted it couldn’t see any way of making it profitable.

Tesco Direct had been attempting to compete with sites like Argos and Amazon, selling everything from sofas to TVs. The site launched in 2006 but has since failed to keep up in the crowded market, ending in the decision to close down the website on Wednesday.

“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,” said Charles Wilson, the new boss of Tesco UK.

“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 surprise move will put 500 jobs at risk, leading to the closure of the distribution centre at Fenny Lock, Milton Keynes, which handles Tesco Direct orders.