Tesco closes its online Tesco Direct business, but Amazon carries on
According to Reuters, Tesco, Britain’s biggest retailer, said that it will close its non-food website Tesco Direct in July, having decided it could not make the loss-making business profitable. Clearly, Amazon doesn't subscribe to such a business model and continues to run its main operations at loss, to the detriment of normal retailers. We have complained in the past about the US market anomaly, where businesses can run at loss, funding their loses from stock market capital. Not sustainable in a long run, but in the meantime, it destroys genuine competition.