2200 GMT - Jefferies welcomes Wesfarmers's decision to close its loss-making Catch business. It cites intense competition in marketplaces for customers and search traffic, while highlighting that global retailers have a large scale advantage. Analyst Michael Simotas said it's disappointing that the 2019 acquisition of Catch destroyed capital over time and that the business racked up losses. "But there have been ecommerce benefits to retail divisions and Catch's fulfillment centers will benefit Kmart's margin and customer experience," Jefferies says. One positive from Tuesday's announcement is the lack of commentary from Wesfarmers about its other divisions. That suggests little risk to consensus forecasts, says Jefferies, which rates Wesfarmers a hold. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
January 21, 2025 17:00 ET (22:00 GMT)
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