Woolworths restructures its supermarket leadership team

New CEO Amanda Bardwell has put her stamp on Woolworths, creating a retail division to oversee its supermarkets, convenience stores, meat supply and private label groceries.

Amanda Bardwell has put her stamp on Woolworths, creating a retail division to oversee its supermarkets, convenience stores, meat supply and private label groceries. Picture: Brook Mitchell/Getty Image

Recently appointed Woolworths chief executive Amanda Bardwell has pushed through a restructure of the supermarket giant’s flagship food operations to create a new business unit called Woolworths Retail that will span ­supermarkets, Metro stores, its meat supply arm and private label groceries to fashion a new “super division” responsible for tens of billions of dollars in sales.

The rejig of the company’s ­supermarkets arm – which delivers the bulk of Woolworths’ earnings – comes as its former supermarkets boss Natalie Davis was poached by private hospital operator Ramsay Health Care to be its CEO.

On Tuesday, Woolworths announced that Annette Karantoni would be the inaugural managing director of a new division, Woolworths Retail, reporting to Ms Bardwell. Ms Bardwell became CEO of Woolworths Group from September when she replaced former boss Brad Banducci.

It marks the first major restructure of the group under Ms Bardwell’s leadership.

The new Woolworths Retail division brings together key components of the Australian retail business including Woolworths supermarkets, Metro, Greenstock (red meat supply business) and Woolworths Food Company Retail (private label brands).

Annette Karantoni, the new managing director of Woolworths Retail. Picture: Michael Armstrong

The restructure of the jewel in the crown of the Woolworths food operations comes as the supermarket has struggled to lift sales and profitability, with its quarterly sales growth into Christmas outpaced by arch-rival Coles.

In August last year, Woolworths posted a 93.3 per cent dive in full-year net profit to $108m after booking $1.7bn in impairments related to its stake in drinks group Endeavour and its struggling New Zealand supermarket arm.

Woolworths recorded a 5.6 per cent lift in full-year sales to $67.922bn and a net profit – before significant items – of $1.711bn, down 0.6 per cent.

When reporting its interim results later this month, Woolworths’ results will be weighed down by the cost of a protracted strike at some of its distribution centres late last year. Woolworths has warned it was facing a $140m sales black hole due to the 17-day strike at its distribution centres, to slice as much as $60m from the earnings of its flagship Australian supermarket division.

Also at a time of inflationary pressures in the supply chain and cost-of-living pressures for consumers, the new boss of the expanded Woolworths super­markets and food division will have challenges ahead of her.

Ms Karantoni had been leading Primary Connect, Woolworths’ supply chain business, for more than three years and before that spent more than 20 years working across Woolworths Group; she has held senior leadership roles in Australian food in e-commerce, buying, marketing and replenishment

“Our Woolworths Retail business is the cornerstone of our group and critical to our success. Getting it right for our customers starts with our team, and we are taking the opportunity to simplify the way we work to create the biggest impact for our customers,” said Ms Bardwell.

“With Metro, Greenstock and Woolworths Food Company Retail moving into Woolworths Retail under Annette’s leadership, we will be able to enhance the role our retail food stores and own brand play in meeting the needs of our customers.”

Jeanette Fenske, director of stores, and Paul Harker, chief commercial officer, who have been leading Woolworths supermarkets on an interim basis, will continue in their existing roles as part of Woolworths Retail’s leadership team, reporting to Ms ­Karantoni.

In New Zealand, Sally Copland has been appointed managing director, Woolworths New Zealand. Ms Copland has been with Woolworths for more than 18 years, having held several senior positions.