Woolworths chief executive Brad Banducci says Australia's largest retailer can grow faster by ditching its liquor and hotel businesses and focusing on food and everyday needs and leveraging investments in e-commerce, loyalty, media and supply chain.

In arguably the biggest shakeup in Woolworths' 94 years, the retailer plans to combine Endeavour Drinks, which owns Dan Murphy's and BWS, and pubs and pokies company ALH Group into a $10 billion business and spin it off next year through a demerger, initial public offering or trade sale.