Wesfarmers has announced that Catch will cease to trade as a standalone operating business in the fourth quarter of the 2025 financial year.
Catch’s e-commerce fulfilment centres will be transferred to Kmart Group, while select digital capabilities developed in Catch will be transferred to Wesfarmers’ retail divisions.
Wesfarmers Managing Director Rob Scott says the decision is in the best interests of shareholders and will better leverage the assets and capabilities developed within Catch.
“While Catch’s financial performance has been challenging, we have gained valuable insights and capabilities that have accelerated the Group’s digital transformation and supported the development of the OnePass membership program,” he says.
“Since the acquisition of Catch in 2019, Wesfarmers’ retail divisions have significantly enhanced their data and digital operations, recording more than $3 billion in e-commerce sales and 220 million monthly digital interactions with customers in the 2024 financial year. Wesfarmers’ retail divisions currently represent the largest non-food, omnichannel retail group in Australia.
“The recent increase in competitive intensity in the Australian e-commerce sector has affected Catch’s financial performance and growth prospects. In this environment, the Group’s retail and health businesses, with their leading omnichannel offerings and trusted brands, are better positioned to respond as the market and customer expectations evolve. These businesses are supported by extensive store networks, leading e-commerce platforms, the Group’s shared data asset and complementary loyalty and membership programs, including OnePass. Together, these elements provide the opportunity to cost-effectively scale the Group’s customer propositions, helping create shareholder value.
“We thank the Catch team for their hard work improving the operating performance of the business and building valuable capabilities for the Group. Where possible, opportunities for redeployment within the Group will be offered to affected team members.”
One-off costs
Wesfarmers expects to record one-off costs associated with the wind down and transition of Catch of between $50 million and $60 million, to be included in the results for the second half of the 2025 financial year. This amount doesn’t include the operating losses Catch will incur from trading in the second half of the 2025 financial year.
The expected one-off costs include approximately $25 million to $30 million of non-cash costs.
Subject to review by the Group’s auditor, Catch is expected to report an operating loss before tax of between $38 million and $40 million, for the half-year ended 31 December 2024. This doesn’t include any of the expected one-off costs associated with the wind down and transition.
eBay’s offer
Following Wesfarmers’ announcement, eBay Australia has offered its support to sellers who will be looking to explore new opportunities for their business.
eBay Australia CMO and Director of Category Rebecca Newton says the retailer is ready to help sellers impacted by the closure get back on their feet during this critical transition period.
“The demands of the e-commerce landscape are evolving at unprecedented speed, and we understand the stress this announcement places on sellers. As a trusted global and local marketplace, and more importantly, a supportive community, we’re steadfast in our commitment to helping sellers connect with buyers and drive long-term success,” she says.
“We hope to provide a solution for sellers to stabilise their businesses while unlocking future growth opportunities. Our dedicated eBay team is here to offer insight and guidance for interested sellers, and we welcome the conversation.”