Woolworths boss announces retirement in the wake of price gouging, Australia Day controversies

Woolworths chief executive Brad Banducci has stepped down days after a trainwreck interview on the ABC’s Four Corners.

Woolworths chief executive Brad Banducci has announced his retirement days after a trainwreck interview on the ABC’s Four Corners.

The supermarket announced Mr Banducci’s retirement in a statement to the ASX on Wednesday.

A spokesman for Woolworths said the decision was not connected in any way to the Four Corners interview on Monday night.

Mr Banducci told analysts and media at Woolworths’ half-year results briefing that he had announced his intention to “retire, not resign” at the end of August.

“After eight years in the role and as we’re going to centenary, it felt the right time to pass on the baton,” he said.

Woolworths Group chair Scott Perkins added the “timeline is completely unaffected by external events of the last couple of weeks” and that the succession process had started in the middle of 2023.

“I can be absolutely emphatic on that point,” he said.

Mr Banducci said he had been given the option to delay his retirement announcement “given recent events” but “that wouldn’t have been authentic”.

He acknowledged making mistakes. “The thing about retailing is there’s always things we can be better at, that’s what gets us up in the morning,” he said.

“Of course some of the ways we managed communication, particularly into Australia Day, we can improve, I fully acknowledge that.”

The 59-year-old said the decision to retire came after “important conversations” with his family in recent years and awareness of his own “mortality”.

“I do believe in the circle of life, it’s eight years since I got this privilege and it kind of felt right to close that circle the way it started,” he said.

Brad Banducci on Four Corners. Picture: ABC

Amanda Bardwell, head of e-commerce arm WooliesX, will take over the top job in September. Ms Bardwell will earn a base salary of $2.15 million, with generous bonus incentives.

“It has been a privilege to be a member of the Woolies team and one I have never taken for granted,” Mr Banducci said in the ASX statement.

“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.”

Mr Banducci has “has given notice of his intention to retire and, by agreement with the board, will leave in September 2024, Woolworths Group’s 100th year”, the ASX announcement said. “Brad will retire after 13 years with Woolworths Group, and eight-and-a-half years as Group CEO.”

Mr Perkins thanked Mr Banducci “for his outstanding leadership and contribution”.

“Brad has led a remarkable turnaround and transformation of the Group,” he said.

“He has engendered a customer-first, team-first culture, worked to strengthen existing businesses and build digital, e-commerce and analytics capabilities that are seen by our peers as world leading. Most importantly, he has built a team of amazing calibre.

Amanda Bardwell will take over the top job. Picture: Nikki Short

“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.”

The Australian reports Mr Banducci will walk away with $24 million worth of Woolworths shares, plus an estimated $6.5 million for his final nine months of service.

On Monday night’s Four Corners, Mr Banducci walked out of an interview while being grilled over allegations of price gouging and the lack of competition in the Australian supermarket sector.

Both Coles and Woolworths have denied engaging in price gouging.

Mr Banducci walked out after a question about former Australian Competition and Consumer Commission (ACCC) boss Rod Sims, but later returned and finished the interview.

Four Corners reporter Angus Grigg put it to Mr Banducci that Mr Sims had characterised the Australian grocery sector as one of the most concentrated in the world — but the Woolies boss appeared to bristle at the mention of the former competition czar’s name.

Brad Banducci walks out of the interview. Picture: Four Corners

“Retired, by the way,” he said.

He later asked to have that comment edited out of the interview, saying he “shouldn’t have said that”, but Grigg insisted it was on the record.

Mr Banducci then stood up. “Yeah, no, I think I’m done, guys,” he said. “You know, I do this with good intent. I don’t do this with bad intent.”

Mr Sims told Perth’s 6PR radio he didn’t take the remarks personally.

The supermarket declined to add anything further on the Four Corners interview when contacted for comment on Tuesday.

Prime Minister Anthony Albanese, reacting to news of Mr Banducci’s retirement, said he had seen the “problematic” interview excerpt but “I want to talk about things other than personalities”.

“What’s very clear is that for customers out there when they get to the checkout, they should get the lowest prices possible and when farmers are getting less for their products, I’ve said very clearly then the price at the checkout should reflect that,” he told ABC Radio in Sydney.

The supermarkets have denied price gouging. Picture: David Swift/NCA NewsWire

“I think people are concerned about competition in the supermarket industry. Woolworths are an important company, they are Australia’s largest employer, they employ 200,000 Australians ... but we need to make sure that competition is appropriate and that’s why we’ve set up reviews.”

He added that former ACCC chair Allan Fels “has said price gouging is alive and well it’s down to the market power”.

Mr Albanese earlier said Coles and Woolworths had been put on notice to “do the right thing” amid four separate reviews, including an ACCC price inquiry and a Senate inquiry, into the conduct of the supermarket chains.

Speaking on Perth FM radio on Tuesday, Mr Albanese said he would be “prepared to change some of the rules” based on the outcome of the ACCC inquiry.

“One of the things that is happening, I reckon — and last night will add to it, the Four Corners program — is there’ll be pressure on the supermarkets to do the right thing,” he told HIT FM WA on Tuesday.

Woolworths also faced public criticism and calls for a boycott last month after ditching Australia Day products, with Mr Banducci and the supermarket forced into damage control.

The South Africa-born CEO later apologised to staff in a letter for the backlash they had received.

Woolworths on Wednesday reported a half-year loss of $781 million, due to a previously announced $1.5 billion non-cash writedown of the New Zealand business.

Profit before significant items was up 2.5 per cent to $929 million, and revenue was up 4.4 per cent to $34.64 billion.

[e-mail]