Woolworths to Shut Down MyDeal After $100 Million Write-Off
Woolworths has announced it will close the online marketplace MyDeal by September 30, 2025, as part of a strategic move to stem losses and concentrate on more profitable ventures. The supermarket giant plans to redirect its attention towards enhancing its Big W Market and Everyday Market platforms.
A Costly Exit from MyDeal
The decision to shut down MyDeal is expected to cost Woolworths between $90 million and $100 million, which includes expenditure on employee redundancies and acquiring the remaining stake from the platform's founder. Additionally, Woolworths anticipates a further $45 million loss in asset value related to the closure.
Reasoning Behind the Move
Woolworths Group CEO Amanda Bardwell cited the intensely competitive nature of the online marketplace sector, emphasizing that marketplaces integrated directly within retail brands offer superior financial benefits. She stated, "The closure of MyDeal will lead to a meaningful reduction in Woolworths MarketPlus operating losses once completed."
Bardwell also highlighted that while MyDeal as a standalone marketplace is shutting down, its technology, seller relationships, and operational capabilities will continue to support the expansion of Big W Market and Everyday Market.
A Reflective Look at Woolworths’ Strategy
MyDeal was acquired by Woolworths in 2022, with the vision to challenge dominant online retailers. However, less than three years on, the venture proved less profitable, prompting a shift in corporate priorities. Bardwell expressed gratitude to the MyDeal team for their commitment during this period of transition.
Industry Context and Competitive Landscape
Woolworths' decision follows similar industry moves as rivals have exited unprofitable online segments. The online retail space remains fiercely competitive, particularly with international giants maintaining strong footholds. Woolworths’ focus on consolidating marketplace offerings into established retail brands reflects a strategic pivot aimed at sustainable growth and improved financial health.
What This Means Going Forward
- MyDeal will officially cease operations on September 30, 2025.
- Woolworths will invest in growing Big W Market and Everyday Market using MyDeal’s technology and seller networks.
- The closure streamlines Woolworths’ marketplace efforts to focus on channels with better profitability and integration.
- The company expects a material drop in losses from its MarketPlus division once the transition finalizes.
In summary, Woolworths is recalibrating its online marketplace approach in a bid to cut sustained losses and sharpen its business focus on more promising and integrated retail models.
