Woolworths has announced its decision to pay between $90 million and $100 million to wind down the online marketplace MyDeal, as part of a strategy to address financial losses and concentrate on more profitable operations. Earlier this year, Woolworths initiated a review of its less profitable segments, leading to this significant decision.
The MyDeal website will be officially closed on September 30, with Woolworths now redirecting its efforts towards Big W Market and Everyday Market. Chief Executive Amanda Bardwell cited the “intensely competitive environment” and the advantages of integrating marketplaces within established retail brands as key reasons behind the closure. She expressed optimism that shutting down MyDeal would considerably reduce operating losses associated with Woolworths MarketPlus once the transition is completed.
Despite the closure, Woolworths will retain the MyDeal technology platform and seller relationships to bolster the growth of its BIG W Market and Everyday Market branches. This decision follows Woolworths’ acquisition of an 80% stake in MyDeal in 2022, aimed at strengthening its position against major online retailers like Amazon.
Bardwell extended gratitude to the MyDeal team for their dedication over the past three years, contributing to the platform and the broader business. Along with redundancy payments to staff, Woolworths expects to incur around $100 million in closure costs, in addition to losses of about $45 million in assets.