Established in 2006, Catch, an Australian online retailer, made headlines as one of the pioneering platforms for significant discounts. However, the company, which was purchased by Wesfarmers for $230 million in 2019, has recently announced its impending closure due to ongoing financial losses.
At the time of Wesfarmers’ acquisition, Amazon had just begun its Australian operations, generating annual profits of around $500 million. Fast forward to today, and Amazon’s revenue has surged to $3.1 billion, while other competitors like Temu and Shein have also captured substantial market shares among Australian consumers. Catch has cited an inability to keep pace with this intense competition as a primary factor in its decision to shut down.
The closure of Catch has drawn attention not only for its impact on the e-commerce landscape but also for the loss it represents for Australian-owned businesses in the sector. Industry peers have expressed concern, highlighting the importance of nurturing local e-commerce entities to foster a competitive market.
As the situation unfolds, many are reflecting on the changing tides of online retail in Australia and the significant challenges faced by native companies trying to find their footing amid formidable international contenders.