After trialling the offer earlier this month, Tesco said House of Fraser has agreed to sell 2,000 products from homeware brands including Linea and Pied A Terre.
It is the biggest retailer to date to have signed up to Tesco Direct since it opened up to third party retailers two years ago and marks a significant step up for Tesco as it seeks to attract more household names.
Mothercare’s Early Learning Centre brand will also start selling products on Tesco Direct as of today.
Tesco said it has also renewed its partnership with all 50 retailers signed up to its website to offer customers Clubcard points on all of their online purchases.
It has also expanded its click and collect service to include more third party retailers available for customers to pick up in stores.
Its renewed push online comes as Tesco chief executive Philip Clarke is expected to deliver the worst quarterly sales performance in over 15 years on Wednesday, with analysts at Barclays forecasting an underlying sales decline of up to 4.1 per cent.
The group is expected to partly blame the performance on a slowdown in the grocery market, pricecuts and its store refurbishment programme, which is disrupting sales.