An RMIT expert has explained how Catch’s inability to distinguish itself amid a competitive market led to its demise.
Earlier this week, Wesfarmers announced that Catch would cease to trade as a standalone operating business in the fourth quarter of the 2025 financial year.
Commenting on this, Dr Jessica Pallant, a Lecturer in Marketing at RMIT University, specialising in retail and the interplay between humans and technology, says it’s unfortunate that another Australian retailer will shut down. She believes Catch’s closure could be attributed to lack of clear branding and value proposition.
“Catch started by offering once-a-day deals in limited quantities. This triggered an immediacy for the products and capitalised on consumers’ fear of missing out,” she says.
“The company then became a low-cost e-commerce platform offering everyday deals. But it didn’t signal to consumers the benefits of this – or provide a point of distinction from other retailers.
“Catch was initially a highly specialised e-commerce platform before it was acquired by a generalised retail conglomerate. This is a much harder category in which to successfully compete and could be another factor in the company’s downfall.
“It could have also been hampered by temporarily opening physical stores, further confusing consumer perceptions.
“Combined with pressure from even lower cost e-commerce retailers, such as Amazon and Temu, this can result in a race to the bottom and is a race that Catch appears to have won.”