Wesfarmers plans to shutter online marketplace Catch, putting around 190 jobs on the line after recording significant operating losses.
Catch will cease trading as a standalone business in the final quarter of the 2025 financial year.
In a statement shared to the ASX on Tuesday morning, a Wesfarmers spokesperson said the decision will eliminate Catch’s losses as a standalone entity.
The online marketplace is slated to record an operating loss of between $38 million and $40 million for the six months to December 31, 2024.
Catch’s e-commerce fulfilment centres will roll into Wesfarmers’ Kmart Group, with select digital functions transferred into its other retail divisions.
Around 190 positions within Catch are expected to be made redundant.
Separately, around 100 roles are expected to fold into the Kmart Group.
In a statement provided to SmartCompany, Wesfarmers managing director Rob Scott said the decision is in the best interest of shareholders and will bolster Wesfarmer’s retail division.
Catch endured stiff competition from international competitors, Scott continued.
“Standalone, broad-based marketplaces require significant scale and traffic to achieve profitability,” he said.
“International players are better able to leverage their global scale, networks and technologies compared to Australian-owned broad-based marketplaces.
“There has been a significant increase in competitive intensity in the Australian e-commerce sector, including from the entry and expansion of international competitors, which has impacted Catch’s ability to generate satisfactory returns over the long term.”
Catch Group was founded by Australian e-commerce stalwarts Gabby and Hezi Leibovich as Catch of the Day back in 2006, quickly capturing the attention of bargain-hungry shoppers across the country.
The founders sold a 40% stake in the business to Tiger Global, which they later bought back in 2016, before selling the business to Wesfarmers in 2019 for $230 million.
More to come.
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Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
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