Strategic Move for Omnichannel Retail Layout: Woolworths Acquires Mydeal

Haitian Hu

doi:10.54254/2754-1169/2025.BL29269

Advances in Economics, Management and Political SciencesOpen access

Strategic Move for Omnichannel Retail Layout: Woolworths Acquires Mydeal

Research Article

Open Access

Strategic Move for Omnichannel Retail Layout: Woolworths Acquires Mydeal

Haitian Hu ^1*

¹ Monash University

^*Corresponding author: hht18851768733@Gmail.com

Published on 11 November 2025

AEMPS Vol.240

ISSN (Print): 2754-1177

ISSN (Online): 2754-1169

ISBN (Print): 978-1-80590-527-1

ISBN (Online): 978-1-80590-528-8

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Abstract

This study takes the case of Woolworths Group, a leading Australian retailer, acquiring the local e-commerce platform MyDeal, to explore its strategic motivations and integration outcomes in the context of the retail industry’s accelerating digital transformation. Adopting a case study approach, this paper examines Woolworths' multifaceted motivations for the acquisition, including market expansion beyond groceries, enhancement of digital capabilities, cost structure optimization, and supply chain integration, and evaluates the post-acquisition outcomes across both financial and operational dimensions. Although the acquisition initially aligned well with Woolworths’ omnichannel retail strategy, MyDeal's underperformance and continued financial losses led to the closure of its consumer-facing platform in 2025. However, the integration process yielded strategic learning outcomes, offering Woolworths valuable experience in digital platform operations, customer engagement, data-driven personalization, and third-party seller ecosystem management. The Woolworths–MyDeal case shows that even without the expected financial returns, such acquisitions can accelerate digital maturity and inform platform development. It also highlights the need for strategic fit, scalability, organizational readiness, and effective integration for sustainable omnichannel transformation, serving as both a cautionary tale and a strategic guide for traditional retailers.

Keywords:

Omnichannel Retail, Acquisition Strategy, Digital Transformation, Cost Synergy, E-Commerce Integration.

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References

[1]. Weber, K. (2023) Woolworths Digital and Analytics Capabilities to Only Grow in Importance. iTnews. 9, 14-18.

[2]. Verhoef, P.C., Kannan, P.K. and Inman, J.J. (2025) From Multi-channel Retailing to Omni-channel Retailing: Introduction to the Special Issue on Multi-channel Retailing. Journal of Retailing, 94, 174-181.

[3]. Bowling, D. (2024) Frozen Meal Manufacturer Collapses. Food & Beverage Industry News. 92, 74-81.

[4]. Sharma, N. and Dutta, N. (2023) Omnichannel Retailing: Exploring Future Research Avenues in Retail Marketing and Distribution Management. International Journal of Retail & Distribution Management, 51, 894-919.

[5]. Juaneda-Ayensa, E., Mosquera, A. and Sierra Murillo, Y. (2016) Omnichannel Customer Behavior: Key Drivers of Technology Acceptance and Use and Their Effects on Purchase Intention. Frontiers in Psychology, 7, 11-17.

[6]. Baldivia, M. and Chowdhury, S. (2025) Adapting Business Models in the Age of Omnichannel Transformation: Evidence from Small Retail Businesses in Australia. Journal of Theoretical and Applied Electronic Commerce Research, 20, 1-15.

[7]. MyDeal.com.au (2022) Q4 FY22 Activities Report: Record Gross Sales and Active Customer Growth. ASX and Media Release. 12, 14-18.

[8]. O'Donoghue (2022) MyDeal Acquired by Woolworths in $243 Million Deal. SmartCompany. 9, 14-16.

[9]. Piotrowicz, W. and Cuthbertson, R. (2014) Introduction to the Special Issue: Information Technology in Retail: Toward Omnichannel Retailing. International Journal of Electronic Commerce, 18, 5-16.

[10]. Herhausen, D., Binder, J., Schoegel, M. and Herrmann, A. (2015) Integrating Bricks with Clicks: Retailer-level and Channel-level Outcomes of Online-offline Channel Integration. Journal of Retailing, 91, 309-325.

References

[1]. Weber, K. (2023) Woolworths Digital and Analytics Capabilities to Only Grow in Importance. iTnews. 9, 14-18.

[3]. Bowling, D. (2024) Frozen Meal Manufacturer Collapses. Food & Beverage Industry News. 92, 74-81.

[7]. MyDeal.com.au (2022) Q4 FY22 Activities Report: Record Gross Sales and Active Customer Growth. ASX and Media Release. 12, 14-18.

[8]. O'Donoghue (2022) MyDeal Acquired by Woolworths in $243 Million Deal. SmartCompany. 9, 14-16.

Cite this article

Hu,H. (2025). Strategic Move for Omnichannel Retail Layout: Woolworths Acquires Mydeal. Advances in Economics, Management and Political Sciences,240,31-39.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of ICFTBA 2025 Symposium: Data-Driven Decision Making in Business and Economics

ISBN: 978-1-80590-527-1(Print) / 978-1-80590-528-8(Online)

Editor: Lukášak Varti

Conference website: https://2025.icftba.org/Bratislava.html

Conference date: 12 December 2025

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.240

ISSN: 2754-1169(Print) / 2754-1177(Online)

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