Woolworths CEO to retire as supermarket pressure mounts

Woolworths’ Brad Banducci has announced his retirement after more than eight years in the top job, on the same day as its half year 2024 results showed a 10% increase to food earnings, as investors fret over potential supermarket price wars. 

The ASX report showed Woolworths Group recorded a $781m loss in the first half of the 2023-24 financial year, following a writedown in some one-off costs including its New Zealand business and Endeavour Group investment. However, without the impairments, Woolworths would have had a $929m profit, or a 2.5 per cent increase from the corresponding period. 

Earnings for food increased 10% to $1.57b and gross margins in food up by 96 basis points. The cost of doing business grew by 9% driven by wage costs. 

Woolworths also forecast that food growth would slow in the next quarter due to ongoing price pressures. 

According to an analyst from Citibank, a potential risk to the company's share price was a price war in supermarket retailing. 

“Future margin growth relies on retention of cost savings and a rational supermarket industry,” the report reads. 

National Farmers Federation Chief Executive Officer Tony Mahar, who spoke to APlus news on the sidelines of evokeAG in Perth today, said he was supportive of the seven enquiries into supermarkets being conducted, however, he would be concerned if deeper scrutiny of Australian supermarkets resulted in a price war. 

"We understand the cost of living pressures, but the last thing we want is more pressure being placed on farmers and more margins being cut on producers,” Mr Mahar said. 

“We’re watching closely and I hope it delivers some results.  

“We would definitely be concerned if it did result in a price war. 

“I suspect the retailers all say that they're competitive already but if it means that they cutting margins across the supply chain and that impacts on farmers, then that would be a hugely negative outcome from this focus.  

“This focus needs to improve transparency and improve understanding and accountability across the supply chain. It shouldn't mean, it can't mean, that farmers’ margins are cut.” 

Mr Banducci, the supermarket giant’s Group Managing Director and Chief Executive Officer, informed the ASX today that he will retire in September, and be replaced by Amanda Bardwell, who currently heads up WooliesX, the e-commerce arm of the business. 

The retirement announcement came just days after Mr Banducci walked out on a Four Corners interview during questioning about price gouging by the supermarket and while the business is the subject of seven inquiries into Australian supermarkets, including the ACCC’s inquiry into the supermarket sector and a review of the Food and Grocery Code of Conduct. 

Read Banducci's retirement statement in full below 

Woolworths Group advises that Managing Director and Group CEO of Woolworths Group, Brad Banducci, has given notice of his intention to retire and, by agreement with the Board, will leave in September 2024, Woolworths Group’s 100th year.  

Brad will retire after 13 years with Woolworths Group, and eight and a half years as Group CEO.  

The Woolworths Group Board also announces the appointment of Amanda Bardwell as Managing Director and Group CEO, to commence on 1 September 2024, following the release of the Group’s 2024 financial year results.  

Woolworths Group Chair, Scott Perkins said: “On behalf of the Board and all of the Woolworths Group team, I would like to thank Brad for his outstanding leadership and contribution.  

“Brad has led a remarkable turnaround and transformation of the Group. He has engendered a Customer 1st Team 1st culture, worked to strengthen existing businesses and build digital, eCommerce and analytics capabilities that are seen by our peers as world leading. Most importantly, he has built a team of amazing calibre. Woolworths Group has been fortunate to have Brad as its leader and he has indeed helped us to be better together. The test of any CEO is to leave the business in much better shape than when they started. On that simple metric, history will judge Brad to have been one of Woolworths Group’s finest leaders.  

“Following an extensive international search process supported by external consultants, we are thrilled to announce the appointment of Amanda as the incoming and 13th Managing Director and Group CEO of Woolworths Group, as the Group starts its next century of creating better experiences together for a better tomorrow. 

“Amanda is a proven leader, business builder and modern retailer. Most recently, under her leadership, WooliesX has gone from infancy in 2015 to a $7bn market leading business. Amanda is highly respected throughout the organisation and I know, like Brad, will live our purpose and work hard to achieve Woolworths Group’s full potential.”  

Brad Banducci said: “It has been a privilege to be a member of the Woolies team and one I have never taken for granted. We have a wonderfully talented and passionate team at Woolworths Group, as personified in Amanda Bardwell, and I look forward to working with Amanda and our team over the next few months as we set ourselves up for the next chapter.”  

Amanda Bardwell has a Bachelor of Business in Marketing from the Queensland University of Technology and a Masters of Business Administration from the University of NSW. Amanda has nearly 30 years experience in retail, 23 years of those at Woolworths Group. Amanda brings a deep understanding of traditional and modern retail, has delivered multiple transformations, and has led and helped to build two of Woolworths Group’s most successful growth businesses in eCommerce and Loyalty. Amanda also has extensive experience in the Food business including Head of Marketing for Woolworths Supermarkets. A summary of Amanda’s employment conditions as incoming Managing Director and Group CEO is attached. 

Ms Amanda Bardwell has been appointed on a salary of $2.15m before incentives.