Wesfarmers has announced Catch will cease to operate as a standalone business by the fourth quarter of the 2025 financial year. As part of a broader restructuring, the e-commerce fulfilment centres currently managed by Catch will be transferred to Kmart Group, and select digital capabilities developed under Catch will be absorbed into Wesfarmers’ existing retail divisions.
The move is designed to streamline operations, eliminate the ongoing losses associated with Catch, and strengthen the digital and omnichannel capabilities of Wesfarmers’ broader retail portfolio.
Strategic Shift
Wesfarmers managing director Rob Scott explained the decision to wind down Catch was in the best interests of shareholders and would better leverage the digital assets and infrastructure built within Catch.
“While Catch’s financial performance has been challenging, the capabilities we’ve developed through the business have been invaluable in accelerating our digital transformation,” said Scott. “This includes significant advancements in data analytics and the launch of our OnePass membership program.”
Catch was acquired by Wesfarmers in 2019, with the intention of strengthening its e-commerce and digital capabilities. Since then, Wesfarmers has integrated Catch’s assets into its retail operations, resulting in over $3 billion in e-commerce sales and 220 million monthly digital interactions in the 2024 financial year. However, the increasing competitive pressures in the Australian e-commerce sector, coupled with the slower-than-anticipated growth of Catch, has led to a reassessment of its long-term viability as an independent business.
“The increase in intensity in the Australian e-commerce sector has affected Catch’s financial performance and growth prospects. The Groups retail and health business with their omni-channel brands are better positioned to respond to the changing market and customers’ expectations,” Scott added.
Transition Plans and Cost Efficiencies
As part of the transition, Catch’s e-commerce fulfilment operations based in Moorebank, New South Wales, and Truganina, Victoria, will be integrated into Kmart Group in the fourth quarter of FY2025. These centres, which are currently underutilised, are expected to enhance the efficiency of Kmart’s online fulfilment capabilities, improving both delivery speed and cost-efficiency.
Kmart Group managing director Ian Bailey highlighted that the increased utilisation of Catch’s fulfilment assets would not only lead to faster deliveries but would also relieve pressure on Kmart’s physical store network.
“Catch’s fulfilment centres are currently less than 50 percent utilised. The transition will result in faster deliveries to customers at a lower unit cost while taking the pressure off our busy stores,” said Bailey.
While the transition is expected to yield positive results in the 2026 financial year, the financial impact is expected to be modest in the short term, with the full benefits expected to increase as online sales grow.
In addition to the fulfilment operations, certain digital assets and capabilities—such as specialised personnel and supplier relationships—will be transferred to other Wesfarmers retail divisions.
Financial Implications OneDigital Update
Wesfarmers expects to record one-off costs between $50 million and $60 million associated with the wind-down of Catch. Catch is also expected to report an operating loss before tax of between $38 million and $40 million for the half-year ending December 31, 2024, not factoring in the one-off costs associated with the transition. This also does not include the anticipated operating losses Catch will incur from trading in the second half of the 2025 financial year. These one-off costs are expected to include approximately $25 million to $30 million of non-cash costs.
OneDigital Update
Meanwhile, Wesfarmers’ investment in OneDigital continues to push the company towards its strategic goals in data-driven retail. The OnePass membership program, which integrates both in-store and online shopping benefits, is a key component of the strategy.
The company plans to accelerate the development of its retail media network, leveraging shared systems and data to commercialise media offerings across its retail and health divisions.
Although OneDigital is expected to report an operating loss of approximately $70 million for in the 2025 financial year, the strategic focus remains on long-term growth, with digital capabilities expected to yield increasing returns over time.
“It’s bittersweet to hear that Wesfarmers is shutting down Catch. On one hand, we both launched in 2006 and they have been our closest competitor with the biggest overlap for nearly two decades. On the other, it’s sad to see the end of an iconic brand that helped pioneer Aussie eCommerce,” said Kogan founder and CEO Ruslan Kogan.
An update on the wind down and transition of Catch is expected at Wesfarmers’ Strategy Briefing Day in May 2025.