Australian online retailer shuts down after almost two decades of service

The shopping experience has changed a lot in the past decades.

In a move that has sent ripples through the Australian e-commerce landscape, 'Australia's favourite superstore' will be closing its doors soon.


Online shopping platform Catch.com.au announced its closure after 19 years of operations.

Their final day of operations will be on 30 April 2025.

Catch.com.au's closure highlighted the intense pressure local online retailers face from international competitors like Amazon, Temu, and Shein.


compressed-Catch.jpeg
Catch.com.au is under the same parent company as Kmart. Image Credit: Catch


'The recent increase in competitive intensity in the Australian e-commerce sector has affected Catch's financial performance and growth prospects,' Wesfarmers wrote in a statement.

Catch.com.au's parent company, Wesfarmers, acquired the online retailer for a hefty $230 million in 2019.

However, Wesfarmers cited a projected operating loss of up to $40 million for the first half of the 2024-25 financial year as a key factor in shutting down operations.


The closure initially left 200 employees facing an uncertain future.

However, Wesfarmers reassured that a chunk of employees may be redeployed to other subsidies, including Kmart.

'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,' Wesfarmers' Managing Director Rob Scott shared.

Furthermore, Kmart Group's Managing Director Ian Bailey pointed out that the transition could benefit Kmart later this year.

'Kmart Group can better utilise Catch's fulfilment centres in Moorebank, which are currently less than 50 per cent utilised,' Bailey shared.

The transition will result in faster deliveries to customers at a lower unit cost while relieving pressure on our busy stores.'


The story of Catch.com.au's rise and fall should be a cautionary tale for Australian retailers.

Founded in 2006 by Gabby and Hezi Leibovich as Catch of the Day, the platform quickly became a go-to destination for discount shoppers.

Yet, despite its early success, Catch could not withstand the competitive onslaught from international e-commerce companies that benefit from global scale and advanced technologies.

Harvey Norman founder Gerry Harvey echoed the concerns of many in the industry.

He previously warned of the growing threat posed by international competitors like Temu and Shein due to their minimal local contributions in terms of taxes and employment.

Harvey's comments underscored the difficulties Australian retailers face in a global marketplace.

Catch.com.au's closure should be a reminder that the convenience of online shopping comes with its own set of challenges for local enterprises.
Key Takeaways

  • Australian online retailer Catch.com.au announced its shutdown due to increased competition and financial losses.
  • Wesfarmers, Catch's owners, could retain several employees to be redeployed within other subsidiaries such as Kmart.
  • Catch struggled against international e-commerce competitors like Temu, Shein, and Amazon, which have impacted both profitability and growth.
  • Catch's e-commerce fulfilment centres will be transferred to Kmart later this year.
Have you used Catch.com.au before for your shopping needs? How do you feel about the closure? Share your insights and comments about Catch.com.au in the comments section below.
 

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I’m sad to see them go. I’m a regular shopper. Especially since my grandkids moved to WA, I order shoes, clothes, Easter Eggs and Advent calendars and have them sent directly to them. I have one Pass so I don’t pay postage. It saves me heaps.
 
My husband and I were shocked to hear this :( We buy a lot from them, including 3 lots of bulk cat food. It was a lot less than buying that much locally! And a lot of other things from them...

Never bought from temu or schein and never will! Yes, the lower case is intentional!

The amount of cat food is because we have two cats of our own (indoor only), but we also feed street cats, with the goal of getting them scanned for a chip, finding out if someone owns them, and hopefully will keep them inside from now on! If they are not chipped, we get them spayed/neutered and let them decide if they come back after that zoooon out of the carrier!
 
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Should have had more publicity. I've heard of them but not the first name that comes to me if I want anything online. I always go to Amazon first and then maybe eBay?

And it seems they lost $500m last year!!!
It's a wonder Wesfarmers themselves don't go bust?
They also lost $1bn when they tried starting Bunnings in the UK. 🙄
 
One and only time I bought from catch I was totally ripped off and also it was a time when we had a lot of rain and they told me they can't deliver from the warehouse because of the floods. Neither the warehouse or my residence are in the floods zone with clear roads between as I had no problem going there in my little car to get it. No loss as far as I'm concerned.
 

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