Latest news with #MyDeal
Yahoo
3 hours ago
- Business
- Yahoo
Woolworths to close MyDeal website to reduce MarketPlus losses
Australian supermarket chain Woolworths Group has confirmed its plan to shut down the MyDeal customer website by 30 September 2025 to reduce MarketPlus operating losses. The company aims to consolidate its retail marketplace offerings into BIG W Market and Everyday Market, accessible through This move is intended to cater to the extended product range needs of BIG W and Woolworths shoppers while capitalising on the increasing visitor numbers on its current online platforms. Woolworths Group CEO Amanda Bardwell said: 'MyDeal has brought marketplace expertise and leading technology to the group's marketplace platform, Woolworths MarketPlus, enabling rapid GMV [gross merchandise value] growth. "However, given the intensely competitive environment and the superior economics of marketplaces integrated into retail brands, we have made the decision to close the MyDeal customer website. "The closure of MyDeal will lead to a meaningful reduction in Woolworths MarketPlus operating losses once completed.' The company expects the cash cost of the closure to range between A$90m ($58.8m) and A$100m. This includes a payment for the 'remaining outside equity under existing put and call arrangements' and costs associated with redundancies. Noncash costs will predominantly consist of an estimated A$45m impairment of MyDeal's assets. Woolworths Group plans to provide a detailed update on the one-off costs related to the MyDeal shutdown during its financial year 2025 (FY25) results presentation in August. Woolworths entered into an agreement to acquire an 80% stake in MyDeal in May 2022, with the deal finalising in September of the same year. The acquisition was part of Woolworths' strategy to strengthen its position in the competitive online retail market, where it faced giants such as However, MyDeal has encountered challenges, including a cybersecurity incident since late September 2022, compromising personal information such as the email addresses, phone numbers, and delivery addresses of approximately 2.2 million customers, reported Reuters. Bardwell added: 'Woolworths MarketPlus will continue to leverage the MyDeal technology platform, seller relationships and capabilities to grow the group's BIG W Market and Everyday Market retail banners. "We would like to thank Sean Senvirtne and the MyDeal team for their hard work and contribution to Woolworths Group in establishing Woolworths MarketPlus.' Woolworths reported net sales of A$17.31bn for the third quarter of FY25. In April, Woolworths' acquisition of Beak & Johnston received approval from the Australian Competition and Consumer Commission. "Woolworths to close MyDeal website to reduce MarketPlus losses" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Sky News AU
12 hours ago
- Business
- Sky News AU
Woolworths Groups faces $100m blow as it shuts major online retailer MyDeal after purchasing it just three years ago
Woolworths Group will spend upwards of $100 million to shut down its customer website MyDeal just three years after purchasing an 80 per cent stake in it. The nation's largest grocer on Friday revealed it will axe the online marketplace to grow its Big W Market and Everyday Market sites. Woolworths Group's chief executive Amanda Bardwell said the decision to close MyDeal follows a warning to investors in February that the company was assessing its portfolio to crackdown on unprofitable parts of the business. 'MyDeal has brought marketplace expertise and leading technology to the Group's marketplace platform, Woolworths MarketPlus, enabling rapid (gross merchandise value) growth,' Ms Bardwell told shareholders. 'However, given the intensely competitive environment and the superior economics of marketplaces integrated into retail brands, we have made the decision to close the MyDeal customer website. 'The closure of MyDeal will lead to a meaningful reduction in Woolworths MarketPlus operating losses once completed.' She said Woolworths will continue to use MyDeal's platform, assets and relationships for Big W Market and Everyday Market. The closure is expected to cost Woolworths between $90m and $100m. This money will mainly go to buyout the stakes of the founders alongside redundancies for outgoing employees. Woolworths will report a further $45m from the loss of MyDeal's assets through the closure. RBC Capital Markets analyst Michael Toner praised Woolworths' decision as the online retailer struggled to turn a profit. 'We view this as a positive, albeit incremental, step towards portfolio simplification as MyDeal had no near-term path to profitability,' Mr Toner said in a statement. Woolworths valued the once-ASX listed MyDeal at $243m when it purchased the retailer in 2022. MyDeal will be closed by September 30, but most of the staff will move within Woolworths Group, the company said. Wesfarmers similarly shut down its online retailer Catch Group earlier this year and cited tough competition from giants such as Temu and Amazon. Woolworths' share price has shed 1.1 per cent as of about 1pm Friday after informing shareholders of its plans to dump MyDeal. The company is down more than eight per cent over the past 12 months.
West Australian
12 hours ago
- Business
- West Australian
Woolworths pulls plug on MyDeal to stem online marketplace losses amid stiff competition
Woolworths will shutter the online marketplace it acquired less than three years ago as part of efforts to stem losses amid stiff competition from global giants like Amazon, Shein and Temu. The supermarket giant on Friday said it would close MyDeal by September 30, with the cost expected to be between $90 million and $100m, including redundancies. MyDeal was acquired in September 2022 and added to Woolworths' MarketPlus platform, which also includes the Big W Market and Everyday Market offerings. Woolworths said MyDeal's closure would help shift the focus towards the two remaining online marketplaces. They allow third-party sellers to list and sell their products directly through the Big W and Woolworths websites, extending the range of goods available beyond what is typically found in-stores. In February, Woolworths boss Amanda Bardwell announced a $400m cost-cutting program to simplify the business, flagging job losses as part of it. On Friday, Ms Bardwell blamed MyDeal's closure on stiff competition, which had been intensified by Shein and Temu's entry in Australia as they gained market share due to heavy discounting and aggressive social media marketing. 'In February we said that we would assess the shape of the group portfolio to address areas where there was not a clear path to profitability or the prospect of a reasonable return on capital,' she said. 'MyDeal has brought marketplace expertise and leading technology to the group's marketplace platform, Woolworths MarketPlus, enabling rapid (gross merchandise value) growth. 'However, given the intensely competitive environment and the superior economics of marketplaces integrated into retail brands, we have made the decision to close the MyDeal customer website.' Ms Bardwell said the closure of MyDeal would lead to a 'meaningful reduction' in Woolworths MarketPlus operating losses once completed. The group will also report a non-cash impairment from MyDeal's assets of about $45m. MyDeal was founded in 2011 by Sean Senvirtne. It listed in 2020 and boasted more than one million active customers when Woolworths acquired a majority 80 per cent stake that valued the Melbourne-based group at $243m. Woolworths will provide a further update on the one-off costs associated with MyDeal's closure at its full-year results in August. The retailer's closure follows that of the Wesfarmers-owned online marketplace Catch, which is set to stop trading at the end of the month. Wesfarmers chief executive Rob Scott at the time said Amazon, Temu and Shein's push into Australia meant Catch had struggled to build the scale necessary to compete.
The Advertiser
13 hours ago
- Business
- The Advertiser
Woolworths bins MyDeal amid stiff online competition
Woolworths will shut down MyDeal, the e-commerce marketplace it acquired a majority stake in three years ago for $217.5 million. The retail giant says MyDeal will close by September 30, so it can focus on the online marketplaces that complement its and websites. Woolworths chief executive Amanda Bardwell said MyDeal had brought marketplace expertise and leading technology to the group's online platforms. "However, given the intensely competitive environment and the superior economics of marketplaces integrated into retail brands, we have made the decision to close the MyDeal customer website," she said on Friday. The closure is part of an assessment Woolworths began in February, looking to address areas where there isn't a clear path to profitability or the prospect of a reasonable return on capital. Shutting down MyDeal is expected to cost Woolworths $90 million to $100 million, including the cost of acquiring the other 20 per cent of MyDeal from its founder and CEO, Sean Senvirtne, and other key management shareholders. MyDeal's closure follows that of which Wesfarmers shuttered on March 31 after years of losses. The Kmart and Target owner bought Catch in June 2019 for $230 million. Woolworths will shut down MyDeal, the e-commerce marketplace it acquired a majority stake in three years ago for $217.5 million. The retail giant says MyDeal will close by September 30, so it can focus on the online marketplaces that complement its and websites. Woolworths chief executive Amanda Bardwell said MyDeal had brought marketplace expertise and leading technology to the group's online platforms. "However, given the intensely competitive environment and the superior economics of marketplaces integrated into retail brands, we have made the decision to close the MyDeal customer website," she said on Friday. The closure is part of an assessment Woolworths began in February, looking to address areas where there isn't a clear path to profitability or the prospect of a reasonable return on capital. Shutting down MyDeal is expected to cost Woolworths $90 million to $100 million, including the cost of acquiring the other 20 per cent of MyDeal from its founder and CEO, Sean Senvirtne, and other key management shareholders. MyDeal's closure follows that of which Wesfarmers shuttered on March 31 after years of losses. The Kmart and Target owner bought Catch in June 2019 for $230 million. Woolworths will shut down MyDeal, the e-commerce marketplace it acquired a majority stake in three years ago for $217.5 million. The retail giant says MyDeal will close by September 30, so it can focus on the online marketplaces that complement its and websites. Woolworths chief executive Amanda Bardwell said MyDeal had brought marketplace expertise and leading technology to the group's online platforms. "However, given the intensely competitive environment and the superior economics of marketplaces integrated into retail brands, we have made the decision to close the MyDeal customer website," she said on Friday. The closure is part of an assessment Woolworths began in February, looking to address areas where there isn't a clear path to profitability or the prospect of a reasonable return on capital. Shutting down MyDeal is expected to cost Woolworths $90 million to $100 million, including the cost of acquiring the other 20 per cent of MyDeal from its founder and CEO, Sean Senvirtne, and other key management shareholders. MyDeal's closure follows that of which Wesfarmers shuttered on March 31 after years of losses. The Kmart and Target owner bought Catch in June 2019 for $230 million. Woolworths will shut down MyDeal, the e-commerce marketplace it acquired a majority stake in three years ago for $217.5 million. The retail giant says MyDeal will close by September 30, so it can focus on the online marketplaces that complement its and websites. Woolworths chief executive Amanda Bardwell said MyDeal had brought marketplace expertise and leading technology to the group's online platforms. "However, given the intensely competitive environment and the superior economics of marketplaces integrated into retail brands, we have made the decision to close the MyDeal customer website," she said on Friday. The closure is part of an assessment Woolworths began in February, looking to address areas where there isn't a clear path to profitability or the prospect of a reasonable return on capital. Shutting down MyDeal is expected to cost Woolworths $90 million to $100 million, including the cost of acquiring the other 20 per cent of MyDeal from its founder and CEO, Sean Senvirtne, and other key management shareholders. MyDeal's closure follows that of which Wesfarmers shuttered on March 31 after years of losses. The Kmart and Target owner bought Catch in June 2019 for $230 million.
Herald Sun
14 hours ago
- Business
- Herald Sun
Woolworths closes MyDeal marketplace
Don't miss out on the headlines from Retail. Followed categories will be added to My News. Woolworths will close online retailer MyDeal on September 30 to instead put its efforts into other businesses, including Big W Market and Everyday Market. In an announcement to the ASX, Woolworths estimates the cost of closing the online business will be between $90m and $100m including payments for outstanding equity and staff redundancies. Woolworths will close down MyDeal, citing a lack of profitability from the online business. Picture: Supplied This ends the online marketplace after more than a decade in business, having started back in 2011 before being acquired by Woolworths in September 2022. Woolworths Group chief executive Amanda Bardwell said Friday's announcement followed a strategic review into MyDeal's profitability. 'MyDeal has brought marketplace expertise and leading technology to the Group's marketplace platform, Woolworths MarketPlus, enabling rapid GMV growth,' she said. 'However, given the intensely competitive environment and the superior economics of marketplaces integrated into retail brands, we have made the decision to close the MyDeal customer website.' Ms Bardwell said MyDeal's closure, once completed, would lead to a meaningful reduction in Woolworths MarketPlus operating losses. Woolworths closing MyDeal follows rival Wesfarmers announcing the closure of its online retailer Catch at the start of the year. Catch was shut down amid spiralling losses as it faced growing competition from sites such as Temu and Shein. The company's last day of trading was April 30, 2025. Originally published as MyDeal marketplace closure to cost Woolworths up to $100m
