Woolworths has announced that it will be shutting down its online retailer MyDeal on September 30, just like its rival Wesfarmers did with Catch earlier this year.
The closure is expected to cost the supermarket giant between $90m and $100m, including payments for outstanding equity and staff redundancies.
The decision to close MyDeal comes after a strategic review into its profitability.
According to Woolworths Group CEO Amanda Bardwell, the online business has struggled to make a profit in an “intensely competitive environment”.
A Decade of Operations Comes to an End
MyDeal was launched in 2011 and was acquired by Woolworths in September 2022.
Despite its efforts, the online marketplace has failed to generate significant profits.
Woolworths will now focus on its other businesses, including Big W Market and Everyday Market.
What’s Next for Woolworths?
The closure of MyDeal is expected to lead to a significant reduction in Woolworths MarketPlus operating losses.
According to Bardwell, MyDeal’s marketplace expertise and technology have already been integrated into Woolworths MarketPlus, enabling rapid growth.
Woolworths’ decision to close MyDeal follows a similar move by Wesfarmers, which shut down its online retailer Catch in April due to spiraling losses.
The online retail space is increasingly competitive, with sites like Temu and Shein gaining popularity.