Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

Want to invest ethically for a brighter future?
(but still make lots of money)?

Want to invest ethically for a brighter future? (but still make lots of money)?

 Take Rask’s FREE Ethical Investing course today.

  • Online & 100% free
  • ETFs, shares & Super
Want to invest ethically for a brighter future? 
(but still make lots of money)?

 Take Rask’s FREE online Ethical Investing course.

How Wesfarmers (ASX:WES) Plans To Win The Online Retail War

Wesfarmers Ltd (ASX: WES) has announced it is acquiring Catch Group for $230 million to try to win the online retail war.

Wesfarmers is a 100 year-old conglomerate which at various times has owned and operated some of Australia’s largest retail brands such as Kmart, Target and more. Today, its largest business is Bunnings Warehouse, the number-one DIY home improvement business.

Wesfarmers’ Acquisition

Wesfarmers has announced that it is acquiring Australian online retailer Catch Group for $230 million, to be paid for in cash.

Catch Group owns the website catch.com.au. Wesfarmers described the business as an established, profitable and cash-generative business that operates an online model that offers branded products on a first-party basis and a third-party online marketplace.

The business has two fulfilment centres located in Victoria to support the online operations.

Wesfarmers said this acquisition made sense as investing in and building its data and digital capabilities is important. The old conglomerate also said it was disciplined with the acquisition  and that it was an adjacent opportunity next to its existing retail businesses.

Assuming the acquisition goes ahead, Catch will operate as an independent business unit under the Managing Director of Kmart Group, Ian Bailey.

Wesfarmers Managing Director Rob Scott said: “This acquisition represents an opportunity to accelerate Wesfarmers and Kmart Group’s digital and e-commerce capabilities whilst continuing to invest in the unique customer and supplier proposition provided by Catch Group.”

Does This Deal Make Sense?

It certainly would create some synergies for Catch’s operations as it would be able to use the buying power of Wesfarmers to purchase products for a cheaper price. This could boost profit materially due to the low profit margins that retailers (including online) operate on.

In the longer term it could be useful for Wesfarmers to build its online presence because Kmart and Target are not known for being large online retailers (yet).

We didn’t get to see what valuation Catch Group was acquired at, but knowing Wesfarmers it was probably at a reasonable price.

I think Wesfarmers is a more attractive investment idea after the purchase, but not a lot more. That’s why I would still rather invest in the reliable ASX shares in the free report below, which have been hand-picked by our lead analyst.

At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.

Is BNPL the opportunity of a lifetime or is the sector a ticking time bomb?

Rask's analyst has just finished a 7,500-word report, The Ultimate BNPL Sector Report, taking a deep dive into this booming ASX sector. It shines a spotlight on each of the major players. You can get the full analyst report for FREE by CLICKING HERE NOW or entering your email below.

Note: the report is 100% free.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Afterpay, Zip Co, Sezzle…

Is BNPL the opportunity of a lifetime or is the sector a ticking time bomb?

Rask's analyst has just finished a 7,500-word report, The Ultimate BNPL Sector Report, taking a deep dive into this booming ASX sector. It shines a spotlight on each of the major players. You can get the full analyst report for FREE by CLICKING HERE NOW.

Note: the report is 100% free.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Keep reading:

Rask Media’s Ultimate BNPL Sector Report

Afterpay, Zip, Sezzle… is this the opportunity of a lifetime? Or is BNPL a ticking time bomb? This 7,500-word analyst report takes a deep dive into the BNPL sector and shines a spotlight on each of the major players in this booming market. 

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

As we emerge from COVID-19, some tech companies are growing faster than ever. Rask’s investment analysts have identified 3 growth stocks set to benefit. Big time.

Enter your email below to access this report for free, including the names, ticker codes and analysis.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.