Woolworths has revealed a tantalising restructure of its upper management and in doing so set up a possible contest for the person to replace CEO Brad Banducci.
Natalie Davis, currently the head of Woolworths’ New Zealand supermarkets will return to Australia to head up the core business of the company, its Australian supermarkets division. She spent two years heading up Woolies NZ supermarkets business.
Woolies said Ms David “will work in partnership with the Food Leadership team to continue to transform our Australian Food Business.”
Woolies supermarkets have lost sales momentum in the past year, with a slower rate of growth (especially same-store sales, the key measure in retailing) than smaller rival Coles.
Ms Davis will take over from current supermarkets boss Claire Peters, who will move into a new role as MD of business-to-business and ‘everyday needs’.
In this role, Ms Peters will oversee Woolworths’ portfolio companies including Big W and Woolworths’ international, property and wholesale arms. She will also take control of the company’s partnership with foodservice company PFD if Woolworths’ $552 million acquisition goes ahead.
Ms Peters has been instrumental in helping Woolworths navigate the COVID-19 crisis, and CEO Banducci said her new placing would be critical to the future of the broader Woolworths Group.
“These areas of our business are critical to the next phase of our journey and we look forward to the opportunities that Claire and her team will unlock in her new leadership position,” he said in a statement from the supermarket giant.
Additionally, the supermarket’s managing director of group portfolio Colin Storrie will move into a new role as head of new business and partnerships, effectively overseeing the retailer’s merger and acquisition strategy.
He had been due to become the chief operating officer and financial officer of Woolworths’ Endeavour Drinks division but did not proceed with the role due to Endeavour’s delayed demerger. That deal has been delayed by around 18 months. He also helped Woolies exit the costly embarrassment that was the Master’s hardware business.
Woolies made it clear in Tuesday’s statement that the three appointments were part of its’ broader ‘ecosystem’ strategy which has been pushed by the company in recent years.
This involves Woolies moving from being a focused retailer into a company with a tighter focus on ‘food and everyday needs’,for consumers that have seen the purchase of PFD and the spin-off of its fuel and Endeavour businesses
“Whilst COVID has accelerated many of our plans to deliver on our ecosystem strategy, it is the talent and leadership that we have built within our group that remains key to our success,” Mr Banducci said yesterday.
Ms David and Ms Peters look like contenders to replace Mr Banducci if he retires in the next couple of years. He came to the top job from Dan Murphy’s the big grog group which is now being pushed out into the Endeavour Drinks spin-off.
Woolies shares eased 0.37% to $37.37.
