Woolworths Cuts Losses, Shuts Down Mydeal Marketplace: A $100 Million Reset
In A Strategic Pivot, Woolworths Is Set To Close Its Online Retail Marketplace, Mydeal, Incurring A One-Time Cost Of $100 Million. The Move Aims To Consolidate Its Digital Offerings Under the More Established Big W And Everyday Market Brands, Enhancing Profitability In An Increasingly Competitive E-Commerce Landscape.
Mydeal’s Rise And Fall
Founded In 2011 By Entrepreneur Sean Senvirtne, Mydeal Offered A Diverse Array Of Home And Lifestyle Products. Woolworths Acquired An 80 Per Cent Stake In September 2022 For $218 Million, Wiht Mr. Senvirtne Continuing As Ceo And Retaining A Significant portion of The Company. His Initial Payout Was Estimated At $77 Million.
Did You Know? Mydeal Boasted Over 1 Million Active Customers At The Time Of The Woolworths Acquisition, But It faced Mounting Pressure From Global E-Commerce Giants.
Strategic Shift Amidst Competition
Woolworths Group Chief Executive Amanda Bardwell Explained That The Decision To Close Mydeal Came After Recognizing The Superior Economics Of Integrating Marketplaces Directly Into Existing Retail Brands. “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,” She Stated.
The Closure Costs Encompass Payouts To Mr.Senvirtne and Other Shareholders, Along With Staff Redundancies.Though, Woolworths Intends To Retain Many Employees By Integrating Them Into Its Expanding Online Operations.
Woolworths will Close Online Retail Marketplace Mydeal At An Estimated Cost Of $100Million To Improve The Supermarket Giant’s Profitability (Stock)
mydeal, Which Offers A Wide Range Of Home And Lifestyle Products, Was Founded By Entrepreneur Sean Senvirtne In 2011 (Stock Image)
The Path Forward: Big W And Everyday Market
Woolworths Will Now Concentrate On Enhancing its Big W And Woolworths Everyday Market Platforms.The Shutdown Of Mydeal Is Projected To Reduce Operating Losses For The Everyday Market Segment, Streamlining the Group’s Online Strategy.The Final Day Of Operations For Mydeal Is Scheduled For September 30. This Decision Follows A Similar Move By Wesfarmers, Which Discontinued Its Mydeal Rival, Catch, In April.
Industry Trends And Implications
The Closure Of Mydeal Reflects A Broader Trend In The E-Commerce Sector, Where Companies Are Reassessing Their Online Strategies To Compete More Effectively Against Global Giants. As Of June 2025, The Australian E-Commerce Market Is Valued At Over $55 Billion, With Online Marketplaces Accounting For A Significant Portion Of This Revenue.Though, The Rising Dominance Of International Players Has led To Increased Competition And Margin Compression For Local Retailers.
Pro Tip: Retailers Are Increasingly Focusing On Creating Integrated Online And Offline Shopping Experiences To enhance Customer Loyalty And Drive Sales.
Summary Of Key Events
| Event | Date | Details |
|---|---|---|
| Mydeal Founded | 2011 | Sean Senvirtne Establishes Online Retail Marketplace. |
| Woolworths Acquisition | September 2022 | woolworths Buys 80% Stake In Mydeal For $218 Million. |
| Closure Proclamation | june 2025 | Woolworths Announces Mydeal’s Closure By September 30. |
navigating The Changing E-Commerce Landscape
The Decision By Woolworths To Close Mydeal Underscores The Challenges Faced By Online Retailers In A Rapidly Evolving market. To Thrive, Businesses Must Adapt By:
- Focusing On Niche Markets: Cater to Specific Customer Segments With Tailored Product offerings.
- Enhancing Customer Experience: Provide Seamless And Personalized Shopping Experiences.
- Leveraging Data Analytics: Use Data To Understand Customer Behaviour And Optimize Marketing Efforts.
In Addition, Building Strong Brand Loyalty And Creating Unique Value Propositions Are Essential For Sustaining Growth In The Face Of Intense Competition.
Frequently Asked Questions About The Mydeal Closure
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Why Is Woolworths Closing Mydeal?
Woolworths Is Closing mydeal Due To Intense Competition From International Players Like Temu And Amazon, and A Desire To Consolidate Online Offerings Under Its Big W And Everyday Market Brands.
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How Much did Woolworths Pay For mydeal Initially?
Woolworths Acquired An 80 Per Cent Stake In Mydeal for $218 Million In September 2022.
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What Will Happen To Mydeal Customers?
Mydeal’s Operations Will Cease By September 30, And Woolworths Expects to Transition Customers To Its big W And Woolworths Everyday Market Platforms.
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Will There Be Job Losses Due To The Mydeal Closure?
Yes, The Closure involves Some Staff Redundancies, Although Woolworths Aims To Retain Many Employees As It Expands Its Other Online Platforms.
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What Is Woolworths’ Strategy After closing Mydeal?
Woolworths Will Focus On Growing Its Big W And Woolworths Everyday Market Platforms, Aiming To Reduce Operating Losses And Improve Profitability By Integrating Marketplace Offerings Into Existing Retail Brands.
What Are Yoru Thoughts On Woolworths’ Decision To Close Mydeal? How Do You See The E-Commerce Landscape Evolving In The Next Few Years? Share Your Comments Below!
