Woolworths shuts MyDeal to stem losses

Woolworths Group will wind down its loss-making online marketplace, MyDeal, three years after paying A$243 million for an 80 per cent stake. The business will close to customers on 30 September as chief executive Amanda Bardwell trims under-performing assets and refocuses on core retail operations.

Transaction snapshot

• Deal value: A$90 million–A$100 million closure cost (plus a non-cash impairment of A$45 million)

• Deal multiples: N/A

• Deal type: Full shutdown; remaining equity bought from founder

• Investors: Woolworths Group (100 per cent owner)

MyDeal’s closure removes a business that estimates a loss of about A$20 million in EBIT in FY24. Bardwell has already pledged to strip A$400 million in costs from the group and cut prices on 400 grocery items after interim net profit fell 20.6 per cent to A$739 million.

The decision follows intensifying competition from global platforms such as Temu, Shein and Amazon, which also prompted Wesfarmers to shut its Catch marketplace earlier this year. Woolworths will consolidate third-party sellers into Big W Market and Everyday Market, continuing to use MyDeal’s technology but without its standalone brand.

Analysts see the move as an early sign of financial discipline in the W Living division, which is forecast to generate A$5.5 billion in sales yet post a A$69 million EBIT loss this financial year. Bardwell’s portfolio review aims to eliminate operations without a clear path to profit or acceptable returns on capital, and MyDeal met both criteria.