Popular Australian online retailer Catch is to close with more than 190 jobs cut amid increased competition from Amazon and Temu.
Catch is expected to post an operating loss of up to $40 million during the first half of the 2024-25 financial year.
Its owner, Wesfarmers, announced the closure of the website on Tuesday morning.
“While Catch’s financial performance has been challenging, we have gained valuable insights and capabilities that have accelerated the group’s digital transformation and supported the development of the OnePass membership program,” Wesfarmers CEO Rob Scott said.
Approximately 100 roles will be redeployed across the rest of the Wesfarmers group and a further 190 roles will be eliminated.
Wesfarmers said Catch faced difficulties competing as online platforms such as Temu, Shein and Amazon expanded their presence in the market.
‘The recent increase in competitive intensity in the Australian e-commerce sector has impacted Catch’s financial performance and growth prospects.
Catch’s e-commerce fulfillment centers will be transferred to Kmart, which is also owned by Wesfarmers.
Popular online retailer Catch to close, more than 190 jobs cut
Catch’s collapse follows a warning from Harvey Norman founder Gerry Harvey about the growing threat posed by international competitors.
“(Shein and Temu) are… pariahs, it’s a very difficult situation for Australian retailers to combat,” he told The West Australian.
‘Here they never pay any taxes, they don’t employ anyone.
‘Broad-based, independent marketplaces require significant scale and traffic to achieve profitability.
“International players are better able to leverage their global scale, networks and technologies compared to broad-based Australian-owned markets.”
This is a breaking story. More to come.