MyDeal marketplace closure to cost Woolworths up to $100m
Woolworths will close online retailer MyDeal on September 30 to instead put its efforts into other businesses, including Big W Market and Everyday Market.
In an announcement to the ASX, Woolworths estimates the cost of closing the online business will be between $90m and $100m including payments for outstanding equity and staff redundancies.
This ends the online marketplace after more than a decade in business, having started back in 2011 before being acquired by Woolworths in September 2022.
Woolworths Group chief executive Amanda Bardwell said Friday's announcement followed a strategic review into MyDeal's profitability.
'MyDeal has brought marketplace expertise and leading technology to the Group's
marketplace platform, Woolworths MarketPlus, enabling rapid GMV growth,' she said.
'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.'
Ms Bardwell said MyDeal's closure, once completed, would lead to a meaningful reduction in Woolworths MarketPlus operating losses.
Woolworths closing MyDeal follows rival Wesfarmers announcing the closure of its online retailer Catch at the start of the year.
Catch was shut down amid spiralling losses as it faced growing competition from sites such as Temu and Shein.
The company's last day of trading was April 30, 2025.
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