Woolworths will be closing MyDeal, its online marketplace website, in September to refocus on Everyday Market and Big W’s marketplace. 

The company estimates the cash cost of the closure to be between $90 and $100 million, with non-cash expenses relating to the impairment of MyDeal’s assets to be around $45 million. This includes a payout for the remaining 19.8 per cent stake in the business still held by its original founders and management team.

After MyDeal is closed, the group will continue to provide customers with a wide range of Big W and Woolworths offerings and leverage its traffic growth across other existing digital properties.

“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,” said Woolworths group CEO, Amanda Bardwell.

She cited an “intensely competitive market and the superior economics of marketplaces integrated into retail brands” as the cause of the decision to close down MyDeal. 

“The closure of MyDeal will lead to a meaningful reduction in Woolworths MarketPlus operating losses once completed,” said Bardwell.

“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.”

Woolworths acquired an 80.2 per cent majority stake in the then-listed MyDeal in late 2022, following Australian Competition and Consumer Commission clearance in August. The acquisition valued the company at $271.8 million, with founder and CEO Sean Senvirtne and other key management retaining the balance of the shares and set to continue to lead the business after the sale.

In October of that year, Woolworths reported a data breach impacting 2.2 million MyDeal users.