Big W’s new boss was a former Oroton chief

Woolworths has installed former Oroton chief Sally Macdonald as the new boss of its Big W discount department store.

Sally Macdonald lifted Oroton from a loss of $9.4m in 2006 to a profit of $27.5m in 2013.

Woolworths has solved one of its many operational problems by installing former Oroton chief Sally Macdonald as the new boss of its underperforming Big W discount department stores.

Ms Macdonald will swap $8000 handbags for bras, singlets, socks, jocks and jeans as she tackles the struggling Big W store network.

Her appointment signals that Woolworths is unlikely to sell the business but rather work to transform the retailer to make it successful again.

As first foreshadowed in DataRoom earlier this month, Ms Macdonald will lead the transformation of Woolworths’ general merchandise division, which includes Big W and online fashion retailer EziBuy.

Her appointment follows the shock resignation of former Big W boss and 20-year retail career veteran Alistair McGeorge who parted ways with Woolworths in August following a staff complaint.

Big W has underperformed for many years with declining sales and earnings, while rivals such as the Wesfarmers-owned Target and Kmart have been reaping stronger sales and growing profitability.

Amid quickly shifting tastes and retail trends Big W has been caught flat-footed, failing to lift sales and earnings since 2013. For fiscal 2015 Big W’s pre-tax earnings plummeted 25.3 per cent to $114.2 million, with sales down 5.7 per cent to $4.1bn. In 2014, pre-tax earnings fell by just over 20 per cent.

Ms Macdonald comes to the role with some runs on the board following her seven-year stint at up-market fashion and apparel brand Oroton, taking the listed retailer from a loss of $9.4m in 2006 to a profit of $27.5m in her last year at the business, 2013. Over the same period sales almost doubled to $184m.

Her appointment fills one of the biggest executive gaps facing Woolworths. The board, led by chairman Gordon Cairns, is also looking for a replacement for outgoing CEO Grant O’Brien as well as pondering what to do with its loss-making hardware chain Masters.

Mr O’Brien yesterday said Ms Macdonald would be a huge asset to the business. “Sally has a demonstrated track record of successfully transforming retail companies through brand and category development and business simplification.

“Her strong knowledge of retail and consumer branded markets, as well as her online experience, make her the ideal leader for Big W.”

Her background includes more than seven years as a management consultant with The Boston Consulting Group in the Melbourne and New York City offices, various buying and store operations roles with Banana Republic and several private retail company directorships.

“I am excited to be leading the team and change program at Big W and EziBuy. While it is a competitive retail landscape, I believe Big W is a great Australian brand that has tremendous scale, represents fantastic value for customers and holds much potential for growth.”