Catch

Aussie Online Retailer Catch to Shut Down Amidst Fierce Competition

The Australian online retail landscape is set for a shakeup as popular deals website Catch.com.au prepares to close its virtual doors. Owned by Wesfarmers, the company has announced the shutdown of the Catch marketplace, a move that will see approximately 190 jobs lost and marks a significant shift in the competitive e-commerce space. This decision comes as Catch faces increasing pressure from international giants like Temu and Shein, alongside other local players, leading to substantial financial losses.

Catch's Closure: What's Happening?

The news broke with the announcement that Catch will be merged into the Kmart Group, effectively ceasing operations as a standalone online marketplace. According to news.com.au, Wesfarmers made the decision to wind down the platform due to mounting losses and increased competition. This move signals the end of an era for Catch, a retailer known for its daily deals and wide range of products.

SmartCompany.com.au reported that the closure will lead to around 190 job losses. These job cuts come as a direct result of the decision to shutter the online marketplace, highlighting the real-world impact of the changing retail environment. The financial strain on Catch has been significant, with reports indicating substantial operating losses.

Recent Updates: A Timeline of Catch's Demise

The closure of Catch has been a rapidly unfolding story. Here's a look at the key events:

• Initial Announcement: Wesfarmers officially announced the decision to close Catch as a standalone entity, merging it into the Kmart Group.
• Job Losses: Approximately 190 jobs are set to be lost as a result of the closure. This marks a significant blow to the Australian retail workforce.
• Financial Losses: Catch is expected to report a significant operating loss before tax, estimated to be around $40 million for the first half of the 2024-25 financial year. This has been a major factor in the decision to close the platform.
• Closure Date: The official closure date for Catch is set for April 30, 2025. This provides a timeline for the transition and closure process.

Catch's History: A Look Back

Catch, formerly known as Catchoftheday, has been a prominent player in the Australian online retail scene. It carved a niche for itself by offering daily deals and discounted products across various categories, from fashion and tech to beauty and groceries. The company’s website, Catch.com.au, became a go-to destination for Aussie shoppers looking for a bargain.

However, the rise of international online marketplaces and increased competition from both local and global players have challenged Catch's business model. The company saw its revenue decline from $364 million in the 2020 financial year to $227 million in 2024. This decline in revenue, combined with substantial operating losses, ultimately led to the closure decision.

According to unverified reports, Catch struggled to compete with the likes of Amazon, Logan, and MyDeal (owned by Woolworths). The deals sector became increasingly crowded, making it difficult for Catch to maintain its competitive edge. The ABC also reported that the closure is expected to cost Wesfarmers between $50 and $60 million.

The Immediate Impact of Catch's Closure

The immediate impact of Catch's closure is multifaceted:

• Job Losses: The most immediate and significant impact is the loss of approximately 190 jobs. This will undoubtedly affect many families and communities across Australia.
• Retail Landscape Shift: The closure of Catch will alter the competitive landscape of Australian online retail. It may lead to other players vying for the market share previously held by Catch.
• Consumer Impact: Australian consumers will lose a popular platform for discounted goods. This may lead to shoppers seeking alternatives, potentially benefiting other online retailers.
• Economic Implications: The closure will have an economic impact, not only in terms of job losses but also in the wider retail sector. The cost of the closure to Wesfarmers will also be a factor.
• Distribution Centers: According to unverified reports, Catch’s distribution centers will be taken over by Kmart. This suggests a consolidation of resources within the Wesfarmers group.

Looking Ahead: What Does the Future Hold?

The closure of Catch raises several questions about the future of online retail in Australia:

• Increased Competition: The Australian online retail market is highly competitive, with both local and international players vying for market share. This competition is expected to intensify.
• Consolidation: The merger of Catch into the Kmart Group may signal a trend towards consolidation in the retail sector, with larger companies absorbing smaller entities.
• Evolution of Business Models: The closure of Catch highlights the need for online retailers to adapt and evolve their business models to remain competitive. This may include focusing on niche markets, improving customer experience, and embracing new technologies.
• Consumer Behaviour: Changes in consumer behaviour, including increased demand for fast shipping and a wide range of products, will continue to shape the retail landscape.
• International Competition: The increasing influence of international online marketplaces like Temu and Shein will continue to put pressure on Australian retailers. It remains to be seen how local businesses will adapt to these challenges.

The closure of Catch is a stark reminder of the challenges facing online retailers in the current market. It highlights the importance of innovation, adaptability, and a strong competitive strategy. While Catch’s online marketplace will be gone by April 2025, its legacy will be remembered, and the impact of its closure will ripple through the Australian retail sector for some time to come. The future of online shopping in Australia looks set to be shaped by the lessons learned from Catch's journey.