Woolworths will pay $100 million to shut down the online marketplace MyDeal to reduce its losses and focus on more profitable parts of the business.
The supermarket giant earlier this year announced an assessment into unprofitable and low-return parts of its operations.
Following that review, Woolworths today confirmed it will close the MyDeal website on September 30 and shift its attention to Big W Market and Everyday Market.
Woolworths Group chief executive Amanda Bardwell said the decision was made due to the “intensely competitive environment” and the “superior economics of marketplaces integrated into retail brands”.
“The closure of MyDeal will lead to a meaningful reduction in Woolworths MarketPlus operating losses once completed,” she said in a statement.
“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.”
The closure comes just three years after Woolworths acquired MyDeal in 2022, after offering to buy an 80 per cent stake, to compete with online giants like Amazon.
Bardwell thanked the MyDeal team for their “hard work and contribution” to the platform in that time and the wider business.
Woolworths will spend around $90 million to $100 million to close MyDeal, including payments for staff redundancies.
A further $45 million in assets will be lost.
