Woolworths to Shut Down MyDeal to Cut Losses Amid Fierce Online Competition

Australia’s top supermarket chain Woolworths will shut down its e-commerce platform MyDeal by September 2025, aiming to curb mounting losses from its MarketPlus segment. The decision reflects growing pressure in the highly competitive Australian online retail market, where global players like Amazon continue to dominate.

Woolworths CEO Amanda Bardwell stated that marketplace models integrated directly into established retail brands offer better economic outcomes. The closure of MyDeal, she said, is expected to “meaningfully reduce” MarketPlus operating losses.

The company forecasts cash closure costs between A$90 million and A$100 million (approximately $59 million to $65 million USD), with an additional A$45 million in non-cash impairment charges. Analysts at Citi estimate that MyDeal accounted for about A$20 million of the A$65 million loss forecasted for the MarketPlus and HealthyLife division in FY25. By eliminating MyDeal, Woolworths expects a leaner cost structure and improved financial performance in FY26.

Woolworths acquired an 80% stake in MyDeal in 2022 for A$217.4 million, intending to challenge e-commerce giants and expand its digital footprint. However, MyDeal has faced difficulties, including a 2022 data breach that compromised personal details of 2.2 million customers, further undermining its competitiveness.

The move follows a broader industry trend, with Wesfarmers—owner of Bunnings and Kmart—also announcing plans to phase out its struggling online platform Catch as a standalone entity by the end of FY2025.

As Australia’s digital retail space grows increasingly saturated, major retailers are re-evaluating standalone marketplace models in favor of integrated solutions that align more closely with their core business strategies and customer ecosystems.