Wesfarmers' Catch Closure: A Blow to Sellers and Consumer Competition
Wesfarmers ceased operations of Catch of the Day on April 30 at 3pm sending shockwaves through the eCommerce industry. With a half a billion dollars in annual online sales, Catch played a significant role in Australia’s online retail landscape.
While major brands may adapt, small and medium-sized enterprises (SMEs) that relied on Catch as a primary sales channel now face an uncertain future—some may not survive the transition.
Industry experts estimate that approximately 70% of Catch’s sales were generated by Marketplace Sellers, with the remainder coming from Catch’s own stock. The failure to maintain a competitive in-house product range, an area where Catch’s original founders excelled, appears to have contributed to the business’s decline. This has left many questioning why Wesfarmers opted for a complete shutdown rather than exploring alternative solutions.
Missed Opportunities in Catch’s Closure
Wesfarmers had several viable options beyond closing Catch entirely. Selling the business to competitors such as Kogan or restructuring the Marketplace as a standalone entity could have preserved jobs and sales channels for hundreds of Australian businesses. Instead, marketplace sellers are bearing the brunt of Wesfarmers’ struggles in inventory management.
While Wesfarmers has indicated that select partners may gain access to sales channels like Bunnings and Kmart under new terms, the transition will be highly disruptive. Many sellers will experience a significant loss of revenue, forcing them to seek alternative marketplaces.
The Digital Marketplace as Critical Infrastructure
Building a successful online marketplace is akin to constructing a physical shopping mall—it requires substantial time, investment, and consistent building of partnerships. Catch had established itself as a well-recognized digital infrastructure, benefiting from years of Google search ranking and brand traffic. By shutting it down, Wesfarmers is effectively destroying this ecosystem under the guise of ‘group efficiency.’
Catch’s customer base, approximately 70% female, will inevitably shift their spending to other platforms. However, the sudden timing of the announcement has also raised concerns. Sellers are questioning why Wesfarmers chose to deliver the news on the same day as the U.S. presidential inauguration—potentially to avoid scrutiny—and why they didn’t provide notice before Christmas, allowing sellers more time to adjust.
The Future for Catch Sellers
As Catch winds down, competing marketplaces are already seeing an influx of seller applications. Kogan, eBay, and MedCart are among those receiving interest from displaced vendors. MedCart, for example hosts 65,000+ products across 1300+ categories supporting 100+ quality Australian wholesale & retail partners.
Ultimately, Wesfarmers' decision to shut down Catch will reshape the Australian eCommerce landscape. While some sellers will adapt, others may not recover & consumers are left with less competition.
