Woolworths bins MyDeal amid stiff online competition
The retail giant says MyDeal will close by September 30, so it can focus on the online marketplaces that complement its Woolworths.com.au and BigW.com.au websites.
Woolworths chief executive Amanda Bardwell said MyDeal had brought marketplace expertise and leading technology to the group's online platforms.
"However, given the intensely competitive environment and the superior economics of marketplaces integrated into retail brands, we have made the decision to close the MyDeal customer website," she said on Friday.
The closure is part of an assessment Woolworths began in February, looking to address areas where there isn't a clear path to profitability or the prospect of a reasonable return on capital.
Shutting down MyDeal is expected to cost Woolworths $90 million to $100 million, including the cost of acquiring the other 20 per cent of MyDeal from its founder and CEO, Sean Senvirtne, and other key management shareholders.
MyDeal's closure follows that of Catch.com.au, which Wesfarmers shuttered on March 31 after years of losses. The Kmart and Target owner bought Catch in June 2019 for $230 million.
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