Catch Connect users unaffected by online retailer’s closure

Here’s what the impending closure of online retailer Catch means for customers using the Catch Connect mobile network.

Catch Connect will continue to operate as usual despite Wesfarmers announcing the shutdown of online retailer Catch.com.au.

While it is affiliated with Catch.com.au, Catch Connect is owned and operated separately, meaning mobile users will not be impacted by the closure.

“We will continue to offer great value products and exceptional customer service, as we always have,” a Catch Connect spokesperson said.

“There will be no changes to your Catch Connect mobile services, and we will continue to operate as usual.”

“Existing customers can continue to use and recharge their services without disruption.”

Catch will be shut down amid spiralling losses, as it faces growing competition from sites such as Temu and Shein.

The company confirmed its last trading day would be April 30, 2025.

Deals website Catch will be shut down.

In a statement to the ASX, retail giant Wesfarmers, which bought Catch for $230m in 2019, said it would stop trading with its assets being sent to the rest of the business.

Catch’s e-commerce fulfilment centres will be transferred to retail brand Kmart Group, with other digital capabilities including specialist personnel and supplier relationship to be transferred to other divisions.

It has been confirmed to NewsWire that about 100 roles will be redeployed but a further 190 jobs will be lost.

Wesfarmers estimates the wind-down will cost between $50m and $60m.

Catch is expected to report an operating loss of up to $40m for the first half of the 2024-25 financial year.

Wesfarmers managing director Rob Scott said the decision was in the best interests of shareholders and would better leverage the assets and capabilities developed within Catch. “While Catch’s financial performance has been challenging, we have gained valuable insights and capabilities that have accelerated the group’s digital transformation and supported the development of the OnePass membership program,” Mr Scott said.

“The recent increase in competitive intensity in the Australian e-commerce sector has affected

Catch’s financial performance and growth prospects.

“In this environment, the group’s retail and health businesses, with their leading omnichannel offerings and trusted brands, are better positioned to respond as the market and customer expectations involve.”

Mr Scott said opportunities for redeployment within the business would be offered to affected team members “where possible”.

Wesfarmers says increased competition in the online market made Catch unviable.

Online retailers such as the Chinese-owned Temu made it tough for Catch.com to survive. Picture: Nicolas Tucat / AFP

Catch was one of the more successful online businesses in Australia as e-commerce took off, being founded in 2006 as Catch of the Day by brothers Hezi and Gabby Leibovich.

The brand grew from the two brothers and five staff members into a business with more than 300 employees.

Wesfarmers said Catch was facing an increasingly difficult competitive environment with local and international players including Temu, Shein and Amazon entering the domestic market.

“The recent increase in competitive intensity in the Australian e-commerce sector has affected Catch’s financial performance and growth prospects,” Mr Scott said.

Shein and Temu first entered the Australian market in 2022 and 2023 respectively and have intensified local competition with their heavily discounted products.

Australian retail billionaire Gerry Harvey’s call for an inquiry into the Chinese-owned Shein and Temu comes amid pressure on local businesses already facing off with US giant retail Amazon, which reported a record $3bn in sales in 2023.

“(Shein and Temu) are a pariah, it’s a very difficult situation for Australian retailers to combat,” he told The West Australian.

“They never pay any tax here, they don’t employ anyone.

“Stand-alone, broadbased marketplaces require significant scale and traffic to achieve profitability.

“International players are better able to leverage their global scale, networks and technologies compared to Australian-owned broadbased marketplaces.”