Brad Banducci, Woolworth’s CEO, announced his resignation on Wednesday, after facing scrutiny over grocery price rises and a “trainwreck” interview with ABC’s Four Corners. Source: Flickr.
Brad Banducci, Woolworth’s CEO, announced his resignation on Wednesday, after facing scrutiny over grocery price rises and a “trainwreck” interview with ABC’s Four Corners.
Banducci will officially step down from his role in September, a position he has held since 2016.
Banducci’s replacement, Amanda Bardwell, head of loyalty and eCommerce, will be appointed as Woolworths first female CEO.
The announcement came following an interview Banducci did with Four Corners, where Banducci made comments about the recently retired former ACCC Chair Rod Sims.
Banducci called Sims “retired”, insinuating he was someone who no longer understood the grocery market and pricing, not realising that Sims retired only two years ago.
After being reminded that he was on record, Banducci stormed out mid-interview, and only returned after being coaxed by his PR team.
When asked for a comment, Sims told 6PR that the interview “raised a whole lot of issues that need to be looked at.”
“In relation to Brad,” Sims added, “I think his genuine point is that I’m two years out-of-date with the competition data.”
While Woolworth’s chair, Scott Perkins, denies that Banducci’s retirement has anything to do with the interview, many people believe that the interview may have hastened his exit.
Banducci’s resignation comes in the middle of a chaotic time for the grocery industry, as Woolworths, and other major supermarket chains, including Coles, and Aldi, are being investigated for price gouging.
Woolworths is being accused of benefitting and profiting from inflation, as they posted their half-year profits with an increase in overall net profit by 2.5 per cent ($929 million), with food sales rising by more than 5 per cent and profit margins on groceries rising by 0.24 per cent.
Woolworth’s pre-tax profits margins rose from 5.3 per cent to 6 per cent, which Banducci claims has nothing to do with price gouging, writing it off as efficiencies.
“Basically, their food and grocery profits are well up at a time when most Australians are suffering from a cost-of-living crisis,” former ACCC chair, Allan Fels, told ABC News.
He also found the company’s write-offs came off as “a bit of cover-up” and “camouflage” for rising profit margins.
Asked about Banducci’s resignation, Prime Minister Anthony Albanese said that he did not care about “personalities” but wanted to talk about something more important.
“What’s very clear is that for customers out there when they get to the checkout, they should get the lowest prices possible and when farmers are getting less for their products, I’ve said very clearly then the price at the checkout should reflect that,” he told ABC radio.
An ACCC inquiry as well as a Senate inquiry will be held to look into the conduct of the supermarket chains.
Banducci is scheduled to appear in the Senate inquiry into gouging food prices next month.
