Banducci,who was born in South Africa,came to Australia in 1989 and spent 14 years at the Boston Consulting Group before joining Woolworths in October 2011 to run its liquor business,which included the Dan Murphy’s and BWS bottle shops.
He then led Woolworths’ food and supermarket division for nine years,and was appointed chief executive in February 2016.
WooliesX managing director Amanda Bardwell in 2021.Credit:WooliesX
In an internalnote to staff published on LinkedIn,he said he had been contemplating the decision for some time.
Banducci explained he wasn’t leaving “because I am tired or burnt out (I am as energised by our business and our potential as I have ever been),or am worried about the various upcoming price inquiries (I am looking forward to effectively representing Woolworths at these important forums)” but because it was “time to pass on the baton”.
Loading
With just over six months left to his tenure,the chief executive said it was business as usual,which will involve fronting the Senate inquiry due to begin in March.
“I do not intend to go quietly into the night,” he wrote.
His departure and Bardwell’s appointment were announced just before the release of Woolworths’ half-year results.
Woolworths’ group sales rose 4.4 per cent to $34.6 billion in the six months to December 31,boosted by a 17.8 per cent lift in online sales. Operating earnings rose 5.3 per cent to $3.1 billion,and profit excluding significant items increased 2.5 per cent to $929 million.
Loading
However,$1.7 billion in charges for goodwill writedowns on the company’s New Zealand food business and the fact Woolworths no longer has a controlling influence over Endeavour pushed its bottom line into the red,to a net loss of $781 million.
The company will pay an interim dividend of 47¢ a share,fully franked,which is up 1 cent from the prior-year half.
Investors appeared unimpressed with the company’s news.Its share price closed the day 6.6 per cent down.
Bardwell will take on the top job as Woolworths faces a series of inquiries into supermarket pricing practices,including from the Australian Competition and Consumer Commission,a review of the food and grocery code of conduct,and the Senate inquiry led by the Greens.
Loading
She has spent more than two decades at Woolworths,joining the business in 2001 as a research and development business manager and in 2004 was promoted to head of marketing for Woolworths’ supermarkets,liquor and petrol businesses. She became managing director of WooliesX in mid-2017.
Starting from September 1,Bardwell will be paid $2.15 million a year including superannuation in her new role,as well as short-term bonuses of up to $3.23 million and long-term bonuses of nearly $3.7 million,subject to shareholder approval.
WooliesX combines Woolworths’ digital,e-commerce,data and customer loyalty divisions,and looks after initiatives such as direct-to-boot and same-day pick-up and delivery orders. It has been a key growth engine for the supermarket giant,responsible for two-thirds of earnings from its food business. Online shopping sales have increased 21.3 per cent and average weekly traffic has lifted 20.5 per cent.
Elsewhere in the Woolworths group,Big W has performed poorly as Australians continue to be cautious with their budgets and trade down. The discount department store’s sales slid 4.1 per cent and earnings slumped 60 per cent in the latest half.