Wesfarmers to wind down Catch, Kmart to acquire fulfillment centres

catch website interface
Wesfarmers has decided to wind down Catch.

Five years after acquiring the online marketplace for $230 million, Wesfarmers has decided to wind down Catch, citing a competitive Australian e-commerce landscape.

“The recent increase in competitive intensity in the Australian e-commerce sector has affected Catch’s
financial performance and growth prospects,” said Rob Scott, Wesfarmers MD.

“In this environment, the Group’s retail and health businesses, with their leading omnichannel offerings and trusted brands, are better positioned to respond as the market and customer expectations evolve.”

To eliminate losses, Wesfarmers’ retail divisions will acquire Catch’s select digital capabilities.

In addition, Kmart Group will acquire Catch’s e-commerce fulfillment centres in Moorebank, New South Wales, and Truganina, Victoria, in the fourth quarter.

“Kmart Group can better utilise Catch’s fulfilment centres, which are currently less than 50 per cent utilised,” said Ian Bailey, Kmart Group MD.

“The transition will result in faster deliveries to customers at a lower unit cost, while relieving pressure on
our busy stores.”

The transition is expected to have a positive but immaterial impact on Kmart’s earnings in the next financial year.

Wesfarmers forecasts to record $50 million to $60 million one-off costs from the wind-down and the transition, which will be reflected in the second half financial results.

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