Online retailer Catch.com is closing down
Online retailer Catch.com is closing down Pixabay

Notable Australian online retailer Catch.com is shutting down after its parent company of Kmart and Bunnings decided to dissolve the company due to increased competition from Amazon, Shein, and Temu.

The website, acquired by Wesfarmers in 2019, will cease operations in the fourth quarter of the 2025 financial year, The Sydney Morning Herald reported.

The closure will affect 200 jobs, while around 100 e-commerce staff will be redeployed to Kmart to make the most of Catch's existing warehouse infrastructure. The transition will come into effect after Catch's official closure in the fourth quarter of the 2025 financial year, with the website discontinuing sales in April. 30.

"Kmart Group can better utilize Catch's fulfillment centers, which are currently less than 50% utilized. The transition will result in faster deliveries to customers at a lower unit cost while relieving pressure on our busy stores," said Kmart managing director Ian Bailey.

Wesfarmers revealed that Catch's projected loss for the first half of the 2024-25 financial year can reach up to AU$38-40 million. Rob Scott, Wesfarmers managing director, said there were multiple driving factors behind Catch's closure, including challenging performance and consistent financial struggles, reported 7 News.

"The recent increase in competitive intensity in the Australian e-commerce sector has affected Catch's financial performance and growth prospects," Scott said.

According to Scott, Catch disproportionately faced severe financial challenges compared to Wesfarmers' other retail brands, such as Kmart. This is attributed to Kmart's hybrid business model, which combines online and offline channels, providing a buffer to navigate tough market conditions and achieve sustainable growth.

On the other hand, Catch's sole focus on e-commerce made it less resilient.

Wesfarmers said that the closure and transitioning of Catch will cost the company AU$50–60 million in one-time charges, including AU$25–30 million in non-cash expenses. Catch, which was renowned for providing steep discounts, was purchased by Wesfarmers for AU$230 million in 2019. However, the online retailer's sales have taken a nosedive from a record of AU$528 million in 2021 to AU$227 million in the most recent fiscal year.