Australia – Woolworths Group plans to close the MyDeal customer website by 30 September, shifting its retail marketplace strategy to focus on BIG W Market and Everyday Market on woolworths.com.au. In a recent disclosure at ASX, the company said that the move is aimed at expanding product range for Woolworths and BIG W customers while consolidating traffic growth on its core digital platforms.
Woolworths Group CEO Amanda Bardwell said the decision followed a strategic review of the company’s portfolio. “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,” she said.
MyDeal, which Woolworths acquired a majority stake in in 2022, has provided marketplace technology and capabilities through the Group’s Woolworths MarketPlus platform, supporting rapid gross merchandise value (GMV) growth.
However, Woolworths said the competitive environment and better economics of marketplaces integrated directly into retail brands led to the decision to shut down the MyDeal site. The closure is expected to reduce operating losses in Woolworths MarketPlus once finalised.
Despite closing the customer-facing website, Woolworths MarketPlus will continue to use the MyDeal technology platform and seller relationships to support BIG W Market and Everyday Market. Woolworths also thanked MyDeal CEO Sean Senvirtne and his team for their contributions to establishing MarketPlus.
The company estimates the cash cost of the closure will be between $90 million and $100 million, covering payments to outside investors, redundancies, and other expenses. In addition, non-cash costs, primarily due to impairments of MyDeal assets, are expected to be around $45 million. Woolworths said it will provide an update on these one-off costs with its full-year results in August.
