Catch.com.au to shut down - with 190 jobs axed

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Australian online retailer Catch will shut down and axe almost 200 jobs amid increased competition from Amazon and Temu.

Catch is expected to report an operating loss of up to $40million for the first half of the 2024-25 financial year. 

Retail giant Wesfarmers, which bought the 'Australia's favourite superstore' for $230million in 2019, announced the closure in a statement on Tuesday. 

'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 managing director Rob Scott said.

Abut 100 of the current jobs will be retained and deployed in other companies owned by Wesfarmers such as Kmart, but 190 roles will be cut. 

Wesfarmers said Catch faced fierce competition from online discount retail giants like Temu, Shein, and Amazon. 

'The recent increase in competitive intensity in the Australian e-commerce sector has affected Catch's financial performance and growth prospects,' a statement read. 

The website's e-commerce fulfilment centres will be transferred to Kmart, in the final quarter of the 2024-25 financial year. 

Popular online retailer Catch (pictured) will stop trading, with almost 200 jobs to be cut

The collapse of Catch follows a warning from Harvey Norman founder Gerry Harvey about the growing threat posed by international competitors (pictured Catch store)

Kmart Group Managing Director Ian Bailey said the move will benefit it customers due to access to the Catch goods warehouse in Moorebank, in Sydney's south-west. 

'Kmart Group can better utilise Catch’s fulfilment centres, which are currently less than 50 per cent utilised. The transition will result in faster deliveries to customers at a lower unit cost, while relieving pressure on our busy stores,' he said. 

Catch's collapse follows a warning from Harvey Norman founder Gerry Harvey about the growing threat posed by international competitors like Temu and Shein. 

'(Shein and Temu) are a … pariah, it's a very difficult situation for Australian retailers to combat,' he told The West Australian.

'They never pay any tax here, they don't employ anyone. Stand-alone, broad-based marketplaces require significant scale and traffic to achieve profitability.

'International players are better able to leverage their global scale, networks and technologies compared to Australian-owned broad-based marketplaces.'

Catch Group was founded by Gabby and Hezi Leibovich as Catch of the Day in 2006 and it quickly became popular among discount shoppers across Australia but ultimately was overwhelmed by the taxes and labour costs its competitors do not face.