Wesfarmers to End its Online Retail Business ‘Catch’

Wesfarmers Non-executive Chairman Michael Chaney speaks during the Wesfarmers 2018 annual general meeting in Perth, November 15, 2018.

Wesfarmers will shut down online retailer Catch.com.au as a standalone business in the fourth quarter of the 2025 financial year.

Acquired in 2019, the company will be dissolved, with its assets transferred to various Wesfarmers divisions, said a statement released by the company on Jan. 21.

The decision follows Catch reporting an operating loss of $38 million to $40 million for the first half of 2024–25.

Wesfarmers Managing Director Rob Scott said Catch’s financial performance has struggled due to rising competition in Australia’s e-commerce sector.

The closure is expected to result in around 190 job losses, according to NewsWire.

“Where possible, we will offer redeployment opportunities within the Group to affected team members,” Scott said in a company statement.

Kmart to Take Over Fulfilment Centres

Catch’s fulfilment centres in Moorebank, New South Wales, and Truganina, Victoria, will transition to Kmart Group by late 2025.

Kmart Group Managing Director Ian Bailey said the underutilised facilities—currently operating at less than 50 percent capacity—will be better utilised under Kmart.

“The transition will enable faster deliveries at lower costs and ease pressure on our busy stores,” Bailey said.

Wesfarmers anticipates one-off closure costs of $50 million to $60 million, which will be recorded in the second half of the 2025 financial year.

Further updates will be provided at Wesfarmers’ Strategy Briefing Day in May 2025.

The company stated that since acquiring Catch in 2019, it has expanded its data and digital operations, achieving over $3 billion in e-commerce sales and 220 million monthly digital interactions in 2024.

“Despite Catch’s challenges, we’ve gained valuable insights that have accelerated our digital transformation and supported the OnePass membership program,” Scott said.

In 2022, Catch was integrated into Wesfarmers’ OneDigital division. With its closure, OneDigital will now focus on expanding its retail media business—an emerging sector that uses shopper data to deliver targeted ads near checkouts.

Wesfarmers expects OneDigital, excluding Catch, to report a $70 million loss this year.

Meanwhile, Catch Connect Mobile assured customers that the closure of Catch.com.au will not impact its operations.

In a message to users, the company confirmed that the mobile service operates independently.

Australia’s E-Commerce Spending Soars

Catch failed to maintain growth amid intensifying competition in the Australian e-commerce sector.

New entrants such as Shein and Temu, which entered the market in 2022 and 2023, added to the competition alongside Amazon.

Online shoppers are projected to reach 23.14 million by 2029—up 96.43 percent from 2020.

The 2024 Global Digital Insights report by Hootsuite and We Are Social found that 52.8 percent of internet users made online purchases, while 23.1 percent bought groceries online.

Australia’s e-commerce spending hit a record $56.07 billion in 2024, with fashion leading at $11.64 billion. Despite this growth, competition remains fierce, shaping consumer preferences and business strategies.