Latest news with #WoolworthsMarketPlus
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.
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
Perth Now
15 hours ago
- Business
- Perth Now
Woolworths shuts down major online retailer
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. Supplied Credit: 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.
