Australian supermarket chain Woolworths Group has confirmed its plan to shut down the MyDeal customer website by 30 September 2025 to reduce MarketPlus operating losses.
The company aims to consolidate its retail marketplace offerings into BIG W Market and Everyday Market, accessible through woolworths.com.au.
Go deeper with GlobalData
This move is intended to cater to the extended product range needs of BIG W and Woolworths shoppers while capitalising on the increasing visitor numbers on its current online platforms.
Woolworths Group CEO Amanda Bardwell said: “MyDeal has brought marketplace expertise and leading technology to the group’s marketplace platform, Woolworths MarketPlus, enabling rapid GMV [gross merchandise value] growth.
“However, 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.
“The closure of MyDeal will lead to a meaningful reduction in Woolworths MarketPlus operating losses once completed.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe company expects the cash cost of the closure to range between A$90m ($58.8m) and A$100m. This includes a payment for the “remaining outside equity under existing put and call arrangements” and costs associated with redundancies.
Noncash costs will predominantly consist of an estimated A$45m impairment of MyDeal’s assets. Woolworths Group plans to provide a detailed update on the one-off costs related to the MyDeal shutdown during its financial year 2025 (FY25) results presentation in August.
Woolworths entered into an agreement to acquire an 80% stake in MyDeal in May 2022, with the deal finalising in September of the same year.
The acquisition was part of Woolworths’ strategy to strengthen its position in the competitive online retail market, where it faced giants such as Amazon.com.
However, MyDeal has encountered challenges, including a cybersecurity incident since late September 2022, compromising personal information such as the email addresses, phone numbers, and delivery addresses of approximately 2.2 million customers, reported Reuters.
Bardwell added: “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.
“We would like to thank Sean Senvirtne and the MyDeal team for their hard work and contribution to Woolworths Group in establishing Woolworths MarketPlus.”
Woolworths reported net sales of A$17.31bn for the third quarter of FY25.
