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Wesfarmers Ltd (ASX:WES) has seen its share price jump more than 1% after announcing loss-making online retailer Catch would no longer operate as a standalone business.
Catch – which offers a range of beauty, tech, sports, fashion and grocery products at budget prices – will be wound down in the fourth quarter of the 2025 fiscal year. Its e-commerce fulfilment centres are to be transferred to Kmart Group, while Wesfarmers retail divisions take on select digital capabilities developed in Catch.
The latter will also include specialist personnel and supplier relationships.
Wesfarmers acknowledged Catch’s financial performance had been challenging, with the business expected to report an operating loss of up to $40 million for the first half of the 2024-25 financial year.
Managing director Rob Scott said the decision was in the best interests of shareholders and
would better leverage the assets and capabilities developed within Catch.
“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,” he explained after the news broke on Tuesday morning.
“The recent increase in competitive intensity in the Australian e-commerce sector has affected Catch’s financial performance and growth prospects.
“In this environment, the Group’s retail and health businesses, with their leading omnichannel offerings and trusted brands, are better positioned to respond as the market
and customer expectations evolve.”
Wesfarmers last traded at $72.58 – a rise of 1.17% since the market opened.
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