Wesfarmers CEO Rob Scott has ended the company's five-year experiment with online marketplace Catch.com.au, acknowledging consistent losses and integrating Catch's infrastructure into its Kmart department store chain. The decision marks a strategic setback for Wesfarmers, highlighting the challenges of competing in the dynamic online retail market dominated by established players.
After five years and substantial losses, Wesfarmers CEO Rob Scott has conceded defeat on the company's costly foray into online retail. The conglomerate acquired Catch.com.au in 2019 for $230 million, hoping to leverage its expertise and growth culture to bolster Wesfarmers ' retail brands. However, the online marketplace consistently failed to generate profits, accumulating significant losses over the years.
Catch founders Gabby Leibovich and Hezi Leibovich walked away while Wesfarmers struggled, ultimately leading to the decision to integrate Catch's infrastructure, including warehousing, into its department store chain, Kmart. Catch will cease operations as a standalone marketplace, leaving behind a painful reminder of a strategic misstep. Wesfarmers anticipates reporting a one-off cost of $50 million to $60 million associated with its exit from Catch. While the company may have gained valuable insights into online retail, it also learned the immense challenges of competing in a highly saturated market dominated by giants like Amazon. This experience serves as a cautionary tale for traditional businesses navigating the disruptive forces of technology. Wesfarmers' acquisition of Catch, though initially perceived as a strategic move to combat the threat of online competitors, ultimately proved to be a costly lesson in cultural integration and the complexities of operating in a rapidly evolving digital landscape
WESFARMERS CATCH.COM.AU ONLINE RETAIL LOSSES STRATEGIC EXPERIMENT Kmart AMAZON
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Wesfarmers Exits Catch.com.au After Costly Five-Year GambleAfter years of losses and a failed attempt to integrate the online marketplace into its retail operations, Wesfarmers has decided to exit Catch.com.au. The $230 million acquisition in 2019 was aimed at boosting the conglomerate's retail expertise and growth, but ultimately proved to be a costly strategic mistake.
Read more »
Wesfarmers Shuts Down Catch as Competition IntensifiesWesfarmers is shutting down its online marketplace Catch in the coming months due to increasing competition from global giants like Amazon, Shein, and Temu. Nearly 200 jobs will be lost, but 100 e-commerce roles will be transferred to Kmart to utilize Catch's existing warehouses. The closure is expected to take place in the fourth quarter of the 2025 financial year, with Catch ceasing product sales on April 30, 2025.
Read more »
Wesfarmers to Shut Down Deals Site CatchWesfarmers, the owner of Kmart and Target, announced plans to shut down its deals website Catch after March, citing increased competition and substantial losses. The company expects to record a pre-tax loss of $38 to $40 million for the latter half of 2024 on Catch. The closure will cost Wesfarmers $50 to $60 million, but its distribution centers will be integrated into Kmart operations.
Read more »
Wesfarmers Throws in the Towel on Catch.com.au After Five Years of LossesWesfarmers CEO Rob Scott has decided to exit the company's online marketplace, Catch.com.au, after five years and significant financial losses. The company will integrate Catch's infrastructure into its Kmart division, effectively ending its operation as a standalone marketplace.
Read more »
Catch Australia to Shut Down After Years of LossesCatch, a popular online retailer in Australia, is closing down after facing significant financial challenges and intense competition from major players like Amazon, Temu, and Shein. Wesfarmers, Catch's parent company, announced the closure, stating that Catch will cease operations in April 2024. The company is expected to report a substantial operating loss for the first half of the 2024-2025 financial year. Wesfarmers cited the increased competition in the Australian e-commerce sector as a key factor contributing to Catch's difficulties. Kmart, another retail brand owned by Wesfarmers, will take over Catch's e-commerce warehouses, aiming to enhance delivery efficiency and reduce costs.
Read more »
New Hyundai Palisade Ditches Diesel and V6 for Turbocharged Petrol PowerThe next-generation Hyundai Palisade will say goodbye to diesel and V6 engines, opting for a turbocharged 2.5-litre four-cylinder petrol engine with a hybrid option for improved efficiency.
Read more »