Australian online retailer shuts down after almost two decades of service
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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.
'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.
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.
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.
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.
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