Wesfarmers is closing its e-commerce platform, Catch, by April 2025 after acquiring it for $230 million in 2019. The company cited increased competition in the Australian online retail space as the main reason for the decision. Catch is expected to post a loss of $38 million to $40 million for the half-year ending December 31, 2024, and Wesfarmers’ total losses related to the business could exceed $400 million.
Although the shutdown will impact around 190 employees, some of Catch’s assets, such as its e-commerce fulfillment centers in Sydney and Melbourne, will be transferred to Kmart Group, and parts of its digital capabilities will be absorbed into other divisions. Wesfarmers highlighted that despite Catch’s financial struggles, the acquisition helped enhance the group’s digital and data capabilities, supporting its broader e-commerce growth.
The decision to shut down Catch comes as the e-commerce sector faces increasing competition, with companies like Temu and Shein entering the Australian market. Despite Wesfarmers’ efforts to revive Catch, including significant investment, the platform’s inability to achieve sustainable profitability led to its closure.
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