Tesco is to create 250 new jobs at its call centre in Dundee, the retailer has revealed.

The announcement came as the company confirmed plans to shut its Cardiff call centre with the loss of 1100 staff.

A spokesman said the Welsh site would close in February next year and customer services operations would move to Dundee.

Matt Davies, Tesco's UK chief executive, said: "The retail sector is facing unprecedented challenges and we must ensure we run our business in a sustainable and cost-effective way, while meeting the changing needs of our customers.

"To help us achieve this, we've taken the difficult decision to close our customer service operations in Cardiff.

"We realise this will have a significant effect on colleagues in the Cardiff area, and our priority now is to continue to do all we can to support them at this time."

Trade union Usdaw said the decision was "devastating" for affected employees.

Nick Ireland, Usdaw divisional officer, said: "Tesco's Cardiff call centre staff are understandably shocked by the announcement of the planned closure.

"This is clearly devastating news for our members and will have a wider impact on South Wales, as so many jobs are potentially lost to our local economy."

Tesco said it would be offering to move some staff to the Dundee site, where it already has 900 employees.

The retailer will now consult with trade unions.