Australian online retailer Catch has announced it will shut down, resulting in the loss of nearly 200 jobs. The company, owned by retail giant Wesfarmers, cited increased competition from international players such as Amazon, Temu, and Shein as a key factor in its decision.
Catch is expected to report an operating loss of up to $40 million for the first half of the 2024-25 financial year. Wesfarmers bought the company for $230 million in 2019. In a statement, Wesfarmers managing director Rob Scott said, 'While Catch's financial performance has been challenging, we have gained valuable insights and capabilities that have accelerated the group's digital transformation.'
Approximately 100 of the current jobs will be retained and redeployed within other Wesfarmers companies, such as Kmart, but 190 roles will be cut. The company's e-commerce fulfilment centres will be transferred to Kmart in the final quarter of the 2024-25 financial year.
Kmart Group Managing Director Ian Bailey noted that the transition would benefit customers by enabling faster deliveries at a lower unit cost. 'Kmart Group can better utilise Catch’s fulfilment centres, which are currently less than 50 per cent utilised,' he said.
Catch's closure follows a warning from Harvey Norman founder Gerry Harvey about the growing threat from international competitors like Temu and Shein. He described them as a 'pariah' and noted that they do not pay tax or employ people in Australia, making it difficult for local retailers to compete.
