Woolworths chairman exits as profits slide

WOOLWORTHS chairman Ralph Waters is stepping down after the company announced a 12.5 per cent slide in its full year profit.

WOOLWORTHS chairman Ralph Waters is stepping down after the company announced a 12.5 per cent slide in its full year profit.

Woolworths made a net profit of $2.15 billion for the year to June 30, down from $2.46 billion in 2013/14.

Mr Waters will leave the company on September 1, to be replaced by veteran company director Gordon Cairns.

Woolworths chief executive Grant O’Brien blamed the “below expectations” result on the company’s food, liquor and petrol business, which saw “subdued sales growth” in the second half.

“The market environment has changed dramatically with stronger competition and significant shifts in customers’ shopping behaviour,” he said.

Food, liquor and petrol delivered an increase in before-tax earnings of 2.1 per cent on the previous year.

The exit of Mr Waters caps off a string of senior departures from the retail giant.

In June, Mr O’Brien announced his intention to resign once a replacement could be found, as Woolworths flagged a drop in profit and tripled the size of planned job cuts to 1,200.

Last week, Big W managing director Alistair McGeorge resigned for health reasons following complaints about his workplace behaviour.

Other senior personnel to depart in 2015 include supermarkets director Tjeerd Jegen, supermarkets finance director Martyn Roberts and chief marketing officer Tony Phillips.