The Wesfarmers Ltd (ASX: WES) share price is higher this morning as the company shakes up the management of its Catch business.
The underperforming online marketplace is set to move from the company's retail segment to its shiny new digital and data division.
The change has spurred Catch managing director, Pete Sauerborn, to walk away from the business.
At the time of writing, the Wesfarmers share price is $49.60, 0.02% higher than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.42%. Meanwhile, the S&P/ASX Consumer Discretionary Index (ASX: XDJ) has slipped 0.37%.
Let's take a closer look at the future of Wesfarmers' online marketplace.
Wesfarmers' OneDigital bags a new Catch
The Wesfarmers share price is in the green on Monday amid news the company is reshuffling its Catch business as part of a transformative divisional shakeup.
Wesfarmers has been alluding to a new digital and data division led by Nicole Sheffield for some time now.
Now, more details on the division – to be named OneDigital – have been released. They include Catch's move from Wesfarmers' Kmart Group to OneDigital from 1 July.
OneDigital is already home to Catch's recently rebranded subscription program, OnePass, as well as Wesfarmers' Advanced Analytics Centre.
Following the announcement of the move, Sauerborn has decided to leave the business. His position will be filled in the coming months.
Wesfarmers managing director, Rob Scott said the shakeup will see all the company's digital pure plays housed under one roof. He continued:
Each of our divisions is developing significant capabilities in data analytics and digital services to meet the specific needs of their customers.
Wesfarmers OneDigital will complement these divisional capabilities … The Catch marketplace, together with the OnePass subscription program and the Advanced Analytics Centre, provide a strong foundation for Wesfarmers OneDigital.
This will support the growth and performance of our retail divisions while providing new growth opportunities for the group.
The move comes as the online marketplace struggles following a pandemic-related boom.
Catch brought in $315 million of revenue over the first half of financial year 2022 – 4.3% less than it did in the prior comparable period.
Its earnings before interest, tax, depreciation, and amortisation (EBITDA) loss also deepened last half. It fell from a $4 million loss to a $30 million loss.
Meanwhile, Catch's gross transaction value increased 1%.
The market will hear more of Wesfarmers' OneDigital division during the company's strategy briefing day in June.
Wesfarmers share price snapshot
The Wesfarmers share price has been struggling through 2022 so far.
It has slipped 17% year to date. It's also nearly 7% lower than it was this time last year.
For comparison, the ASX 200 has fallen 0.8% year to date and has gained 9% over the last 12 months.
