Woolies CEO quits after disaster interview
Woolworths chief executive Brad Banducci has announced his retirement amidst a flurry of challenges facing the Australian supermarket behemoth. As the company grapples with a staggering loss and contends with allegations of price gouging and unfair dealings with suppliers, the announcement of Banducci's departure marks a significant shake-up at the top.
The supermarket giant wasted no time in appointing a successor, promoting Amanda Bardwell to the coveted position after what was described as an "extensive international search process". Bardwell, a veteran of the company with 23 years of experience, currently leads WooliesX, a vital sub-division within Woolworths.
Banducci's retirement comes hot on the heels of Woolworths' latest financial results, which revealed a substantial $781 million statutory loss. This loss was largely attributed to a $NZ1.6 billion ($1.5 billion) writedown in the value of its New Zealand grocery business and a $209 million reduction in the value of its stake in ASX-listed alcohol and hotels spin-off Endeavour. Despite these setbacks, Woolworths managed to announce a 2.5 per cent rise in half-year profit to $929 million, buoyed by a 4.4 per cent increase in revenue compared to the previous year.
However, amidst these financial intricacies lies a more troubling narrative. Woolworths has found itself embroiled in allegations of price gouging and unfair practices with suppliers, casting a shadow over its operations. The spotlight intensified with the release of an ABC investigation featuring a contentious interview between Banducci and reporter Angus Grigg. The interview, part of a comprehensive examination of the Australian supermarket industry amid the ACCC's investigation into allegations of unfair pricing, saw Banducci visibly flustered and defensive.
The program scrutinised how supermarkets profit from rising prices amid a cost of living crisis and included conversations with key industry figures, including Banducci and Coles boss Leah Weckert. Banducci's exchange with Grigg, particularly his dismissal of former ACCC head Rod Sims' remarks, underscored the tension surrounding the allegations. Banducci's subsequent request to edit his comments mid-interview, followed by a brief exit to confer with his PR team, highlighted the sensitivity of the issue.
Grigg, reflecting on the incident, described Banducci's reaction as "pretty startling", while pointing out that the lack of scrutiny faced by supermarket executives over the years was very significant.
Images: ABC / Woolworths