Wesfarmers confirmed last week that the gross transaction values on the Catch platform declined by 26.8 per cent in the six months to December,and the business posted a loss of $108 million for the half.
That included $33 million in restructuring costs as Wesfarmers embarked on redundancies and asset write-offs within the business,while moves were under way for a widespread reduction of costs.
Management blamed the poor results on a slowdown in e-commerce demand after COVID,which resulted in “surplus inventory and an unsustainable cost base” within the business.
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Catch had invested heavily in inventory,fulfilment capacity and staff during the coronavirus-induced surge in online retail,but now spending conditions are slowing.
“We clearly over-invested,” Scott told analysts.
Stock watchers are running out of patience with the operation,with Wesfarmers’ initial investment in the company together with its cumulative losses now approaching $500 million.