Sally Macdonald quits as CEO of Woolworths’ Big W chain

Sally Macdonald has quit the Woolworths-owned discount chain after just 10 months in the job, as its turnaround slows.

Sally Macdonald, in 2012.

Big W chief executive Sally Macdonald has tendered her resignation just 10 months after being appointed to the top job at the Woolworths-owned discount department store chain.

It comes after her predecessor Alistair McGeorge stepped down for “health reasons” in August last year after just 14 months in the position, with a staff complaint about his behaviour tarnishing his exit.

Ms Macdonald, the former chief executive of fashion group Oroton, claimed the lead Big W role in January and quickly made her mark on the company, with a major shake-up of sourcing that led to significant job cuts among its buyers.

However, a turnaround failed to gain steam this year, with the most recent Big W results revealing a first quarter comparable sales decline of 5.7 per cent as heavy discounting moves weighed.

The results were a modest improvement on an 8 per cent slide in sales through the fourth quarter, but pre-tax earnings for the division were not anticipated to improve until at least fiscal 2018.

Ms Macdonald’s decision to step down was linked to the slow progress, with Woolworths (WOW) boss Brad Banducci saying the current turnaround time frame did not meet her initial expectations.

“Since joining Big W in January 2016, Sally has made material progress in restructuring the business, especially in the areas of direct sourcing, product development, supply chain, business simplification and cost reduction,” he said.

“However, despite these and other positive changes, it is apparent that the transformation of Big W will take three to five years to complete and, unfortunately, this time horizon is inconsistent with Sally’s expectation when she joined Big W.”

Ms Macdonald will be replaced in the role by David Walker, who will serve in an interim capacity.

Mr Walker most recently headed the group’s home improvement business, claiming that role in February as Woolworths headed for an ignominious retreat from the sector.

He has previously served in a role of supply chain transformation at Big W.

Woolworths added Ms Macdonald would lend her support to Mr Walker through the transition.

“We look forward to continuing the momentum of change at BIG W, with a continued focus on Big W’s long-term success,” Mr Banducci said.