Woolworths Group will permanently shut down online marketplace MyDeal on September 30. The move follows a strategic review of profitability across its businesses.
The closure will cost Woolworths between $90 million and $100 million. This includes payments for outstanding equity and staff redundancies, according to an ASX announcement made on Friday.
Digital Shift Towards Integrated Marketplaces
The supermarket giant plans to redirect digital focus toward its Big W Market and Everyday Market platforms. These integrated offerings will now host deals previously available through MyDeal.
Woolworths Group chief executive Amanda Bardwell confirmed the decision follows an assessment of segments without clear paths to profitability.
“Given the intensely competitive environment and the superior economics of marketplaces integrated into retail brands, we have made the decision to close the MyDeal customer website,” Bardwell said.
Woolworths Cites Financial Considerations
The decision is expected to reduce losses in Woolworths’ MarketPlus division. The company stated it will deploy MyDeal’s existing technology to support its core digital channels.
“MyDeal has brought marketplace expertise and leading technology to the Group’s marketplace platform, Woolworths MarketPlus, enabling rapid GMV growth,” Bardwell added.
She said the decision was aimed at reducing operating losses and focusing resources on more scalable parts of the business.
Woolworths Acquired MyDeal in 2022
Woolworths acquired an 80 per cent stake in MyDeal in September 2022 for $243 million. The deal de-listed MyDeal from the ASX and saw founder Sean Senvirtne retain 20 per cent ownership.
Senvirtne continued to lead the company under Woolworths’ ownership. MyDeal was founded in 2011 and quickly scaled its operations.
The company specialised in furniture, homewares and general merchandise. At the time of acquisition, MyDeal had more than one million active customers.
It offered over six million products sourced from around 1900 sellers. MyDeal featured on the Smart50 in 2016 and 2017 and experienced a tenfold sales growth over five years.
Customer Migration to Begin October 1
A notice on the MyDeal website states that the business’ “best deals” will migrate to Big W from October 1.
The MyDeal platform will continue to support Woolworths’ digital businesses, which the company considers more sustainable in the long term.
Bardwell said the group must invest in areas with a reasonable return on capital. “We made the decision after assessing areas with no clear path to profitability,” she said.
Impairment Costs to Hit $45 Million
Impairment costs related to MyDeal’s closure are expected to reach approximately $45 million. These costs form part of the total estimated $100 million impact.
The closure affects both staff and operational investments, including redundancy payouts and termination of external equity obligations.
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Industry Follows Similar Trends
Woolworths’ exit mirrors Wesfarmers’ April decision to close Catch.com.au. Catch, like MyDeal, was a standalone online marketplace with an uncertain profit model.
These closures reflect shifting strategies among Australia’s major retail players as they reevaluate the profitability of non-core digital ventures.
Both Woolworths and Wesfarmers now appear to prefer integrated e-commerce platforms tied directly to their core retail brands.
Future Focus on Scalable Digital Retail
Woolworths will now focus on strengthening its core brands’ digital presence. The company said it will invest in Big W Market and Everyday Market where technology from MyDeal will be applied.
Woolworths aims to drive growth and efficiency by unifying its digital operations under established retail identities.
Bardwell said integrated marketplaces offer stronger economics and better scalability. She noted MyDeal’s technology will play a crucial role in enhancing other group platforms.
Marketplace Experiment Draws to a Close
The MyDeal shutdown marks the end of a chapter that began with a $243 million investment. Woolworths now believes the future lies in linking marketplace offerings with its established supermarket and discount retail brands.
The group will proceed with the transition while minimising disruptions to sellers and customers. From October, shoppers can expect to find former MyDeal listings on Big W’s digital platform.
Conclusion
Woolworths has confirmed MyDeal’s closure as part of a broader realignment toward integrated retail marketplaces. The decision, expected to cost up to $100 million, follows a strategic review to focus on scalable, profitable digital operations.
