AUSTRALIA | Woolworths Group announced that it intends to close the MyDeal customer website by the 30th of September.
It will focus the Group’s retail marketplace offer into BIG W Market and Everyday Market. This will continue to provide BIG W and Woolworths customers with an extended range, allowing the Group to leverage its strong traffic growth on existing digital properties.
“In February, we said that we would assess the shape of the Group portfolio to address areas where there was not a clear path to profitability or the prospect of a reasonable return on capital,” said Woolworths Group CEO, Amanda Bardwell.
“MyDeal has brought marketplace expertise and leading technology to the Group’s marketplace platform, Woolworths MarketPlus, enabling rapid GMV growth. However, 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.”
The closure of MyDeal will lead to a meaningful reduction in Woolworths MarketPlus operating losses once completed.
Woolworths MarketPlus will continue to leverage the MyDeal technology platform, seller relationships and capabilities to grow the Group’s BIG W Market and Everyday Market retail banners.
“We would like to thank Sean Senvirtne and the MyDeal team for their hard work and contribution to Woolworths Group in establishing Woolworths MarketPlus.”
The cash cost of closure is expected to be AUD 90 - AUD 100 million, including a payment for the remaining outside equity interest under the existing put and call arrangements, as well as redundancies.
Non-cash costs will primarily relate to the impairment of MyDeal's assets, amounting to approximately AUD 45 million. Woolworths Group will provide a further update on the one-off costs associated with the closure of MyDeal at its F25 results in August.
