Woolworths CEO to step down later this year
Wednesday, 21 February 2024
Woolworths has announced its chief executive and managing director Brad Banducci will step down, days after a trainwreck media interview.
Banducci attempted to walk out of the Australian interview after coming under pressure over questions about supermarket competition, and pressure elsewhere of alleged price gouging and unfair dealings with suppliers.
His departure plans were announced on Wednesday during the supermarket giant’s half year financial results. He will be replaced by Amanda Bardwell come September.
The profit of the New Zealand supermarket business before interest charges and tax fell to $71 million in the six months to January 1, compared to $122m in the same period a year earlier.
Woolworths NZ’s gross profit margin remained largely unchanged, despite the 42% drop in operating profit.
Despite its operating profit being down, it made total sales of $4.1 billion - a 2.3% increase on the $4b recorded last year.
Its gross margin was 22.6% in the period, compared to 22.8% for the same period last year.
Woolworths NZ — which has until recently traded under the Countdown brand — slashed the book value of its NZ business from $2.3b to $700m, saying that was because of a weaker medium-term profit outlook.
Banducci has been with the company for 13 years.
Bardwell, who currently leads the company’s digital division, WooliesX, has been appointed as the new group chief executive and managing director.
Woolworths Group had already earlier signalled to the market that it expected its New Zealand operating profit to be down 42% to $71m. That included $13m in costs associated with its Countdown supermarket rebrand and wider transformation efforts.
The retail giant, with 1400 stores and supermarkets spread across New Zealand and Australia and discount department chain Big W, said its trading performance in New Zealand had “continued to be challenging” during its first six months of the financial year and it had faced sluggish demand, and delayed results due to its transformation efforts.
Banducci said the New Zealand business had been impacted by “slowing sales due to moderating inflation and item declines reflecting the competitive trading environment” in the first half.
He said Woolworths transformation efforts had driven an uplift in sales growth in the second quarter.
“Despite this early progress, there remains much more to be done and we are committed to delivering more value and convenience for our New Zealand customers.”
Woolworths has 191 supermarkets and three dark e-stores in New Zealand. As of January 1, it had rebranded 34 Countdown stores to Woolworths.