Wesfarmers, Australia’s retail giant, has announced the closure of its struggling online platform, Catch.com.au, by April 30, 2025. After years of mounting losses and stiff competition from global players like Temu, Shein, and Amazon, the company is finally pulling the plug. However, in a surprising twist, Catch Connect, the mobile network arm, will remain operational. So, what’s the story behind this selective shutdown?

Why Is Catch Connect Surviving?

Catch Connect, known for its budget-friendly mobile plans, operates independently from Catch.com.au. Optus, the network provider, has assured users that the service will continue uninterrupted. Anthony Shiner, Managing Director of Customer Solutions at Optus, confirmed, “Catch Connect Mobile is independent of Catch.com.au and won’t be affected by its closure.”

For now, Catch Connect users can breathe a sigh of relief. But with Wesfarmers stepping away from Catch’s e-commerce ventures, it raises questions about the long-term future of its mobile arm. Could this be a temporary reprieve?

The Fall of Catch.com.au: Lessons in Mismanagement

Catch.com.au, once a trailblazer in Australia’s e-commerce boom, has struggled for years. Acquired by Wesfarmers in 2019 for $230 million, the platform has been a financial drain ever since. For the first half of the 2024–25 financial year, it’s projected to report an operating loss of $38–40 million.

Wesfarmers Managing Director Rob Scott attributed the collapse to “brutal competition” from global giants like Temu and Shein, which dominate with ultra-cheap pricing. “The competitive intensity in the Australian e-commerce sector has made it impossible for Catch to survive,” Scott said. Yet, this is also a cautionary tale of poor strategy and an inability to adapt to a rapidly changing market.

Job Cuts and Corporate Restructuring

The closure will result in approximately 190 job losses, with only 100 employees redeployed to other Wesfarmers divisions like Kmart and Target. Meanwhile, Catch’s fulfilment centres in Moorebank and Truganina will be handed over to the Kmart Group. Is this strategic realignment, or does it signal cracks in Wesfarmers’ broader retail empire?

Wesfarmers Spins Failure as Opportunity

Wesfarmers is framing the shutdown as a chance to “leverage digital capabilities” from Catch to strengthen other brands like Kmart and Officeworks. While the company touts “valuable insights” gained from the platform’s operations, it’s hard to overlook the millions sunk into a losing venture.

What Does This Mean for Customers and Staff?

• Catch Connect users: Your mobile plans remain safe for now, but the long-term outlook is uncertain.
• Catch.com.au shoppers: The platform will cease operations on April 30, 2025. Refunds will be issued for unused vouchers.
• Employees: The closure leaves 190 people out of work, with limited opportunities for redeployment within Wesfarmers.

A Warning for Australian Retailers

The collapse of Catch.com.au is a stark reminder of the challenges local retailers face in an increasingly globalized market. International e-commerce giants like Temu and Shein dominate with aggressive pricing strategies, leaving Australian businesses struggling to compete. Retail mogul Gerry Harvey has even called for an inquiry into these foreign-owned players, accusing them of dodging taxes and undercutting local companies.

While Catch Connect users celebrate their narrow escape, the bigger question remains: how long can Australian retailers survive in this hyper-competitive environment? Wesfarmers may have cut its losses for now, but the broader battle is far from over.

Stay tuned—this story is just beginning.