Woolworths recasts top executive team to cement lead over Coles

Woolworths’ supermarkets boss Claire Peters has restructured her core buying and replenishment teams.

Analysts expect Woolworths to post stronger store sales for the second quarter, extending its wins over Coles to five consecutive quarters

Woolworths’ supermarkets boss Claire Peters has restructured her core buying and replenishment teams as she accelerates Woolworths’ ambitions to bind itself closer to suppliers.

It comes in the wake of her losing director of buying and merchandising Steve Donohue, who has shifted to run the retailer’s liquor division.

The new structure, which will see Mr Donohue’s former role split in two and shared by new senior Woolworths executives, will form the vanguard in Woolworths’ fresh assault on Coles this year. It aims to put further pressure on its arch rival and continue Woolworths’ four quarters of outperformance in same-store sales growth.

The reshape of Woolworths’ supermarkets management and corporate structure is one of Ms Peters’ first big strategic and management moves since the Tesco veteran joined Woolworths as the new boss of its flagship supermarkets division in June.

Woolworths and Wesfarmers, the owner of Coles, are reporting their December half results this week, with analysts expecting Woolworths to post stronger store sales for the second quarter, extending its wins over Coles to five consecutive quarters.

The new Woolworths model comes as Mr Donohue prepares to take up his new role as boss of Endeavour Drinks in April, putting him in charge of the retailer’s liquor assets, including chains Dan Murphy’s and BWS as well as private label and exclusive brands business Pinnacle Drinks.

In a letter to suppliers, obtained by The Australian, Ms Peters praised Mr Donohue for leading a team that had focused on becoming easier to do business with — an advantage she is keen to continue and improve.

“This was achieved through openness and consistency which I am committed to with the continuation of our progress towards our goal of becoming your most trusted partner,’’ Ms Peters told suppliers.

“As a consequence of Steve’s move we are making a number of changes aimed at maintaining the continuity of our important relationship with you and increasing our joint focus on Woolworths’ customers.”

From April the leadership of the buying and replenishment teams will be shared between Paul Harker and Peter McNamara. Mr Harker will take on the role of director of fresh, group replenishment and buying support while Mr McNamara will assume the role of director of long life (non-perishable groceries), space and insights. The new long-life teams will be grouped into food and non-food. Food covers grocery food, international foods, impulse and tobacco, freezer, breakfast and health categories. Non-food includes health, beauty and baby, household and pet, general merchandise and Woolworths Mobile.

“We’ve been working hard as a team to strengthen our relationships with our suppliers and we’ve been pleased with recent improvements in our voice of the supplier scores as a result,’’ Ms Peters told The Australian.