Wesfarmers announced the first major integration of the recently acquired online platform Catch, bringing its Club Catch membership to Kmart and Target online.
Club Catch members are able to claim free delivery on eligible online orders at the two discount department store chains when spending over $45.
Kmart Group managing director Ian Bailey said that customers are increasingly looking for convenience, and through its partnership with Catch Group, Kmart Group will be able to provide more products at better prices this Christmas period.
“We have been listening closely to our customers and we can see across all of our businesses that the way they want to shop is evolving,” Bailey said.
“More and more of our customers are shopping online and they are looking for a better and more seamless shopping experience whenever and wherever they shop with us.
“We’re going to look at ways to make shopping easier for our customers across all three businesses and that will start with this subscription offer in time for this Christmas.”
Catch Group was acquired earlier this year for $230 million, with the intention that it would support the online growth of Kmart and Target’s e-commerce offers through supply chain, fulfilment, and online execution.
KPMG national sector leader of consumer retail Trent Duvall told Inside Retail that the purchase likely wouldn’t bear fruit immediately, though would make a significant impact on Kmart and Target’s ability to learn, understand and adapt from what has driven Catch’s success.
“They could have gone and bought many, many different businesses that are in various stages of startup, but this is an established business with an established e-commerce, established technologies, and is cash positive,” Duvall said.
“There are very few online retailers in Australia that can claim any of those.”
Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.