Woolworths CEO Brad Banducci has revealed his decision to step down from his position, with Amanda Bardwell, head of loyalty and e-commerce, slated to succeed him as chief executive in September.

Bardwell’s appointment marks a historic moment as she becomes the first woman to lead the company in its nearly 100-year history.

Banducci’s departure comes at a critical juncture for Woolworths and its competitor, Coles, as they brace for an upcoming Senate inquiry led by the Greens.

The inquiry, scheduled for next month, is expected to scrutinise higher grocery costs, which Canberra has blamed for inflating supermarket profit margins at the expense of consumers.

This is what happened when Four Corners asked Woolworths CEO Brad Banducci about the lack of competition in the Australian grocery market.

Watch the #4Corners documentary tonight: https://t.co/dDRYGLaw2i pic.twitter.com/bsrJD9IETB

— ABC News (@abcnews) February 19, 2024

Supermarket investigation

In addition to the Senate inquiry, Labor has urged the competition regulator to investigate the supermarkets, with Prime Minister Anthony Albanese suggesting potential abuse of market power by the retailers.

Woolworths chairman Scott Perkins clarified that Banducci’s succession timeline was not accelerated in response to the scrutiny faced by the supermarket industry.

Perkins stated that interviews with potential candidates for the CEO position had been ongoing since the latter half of the previous year.

“There has been an ongoing dialogue with Brad,” Perkins told media. “There was no change to the timetable, no expedition at all.”

Importance of authenticity

Banducci acknowledged that he had considered delaying his departure but ultimately decided against it, citing the importance of authenticity. Despite the challenges facing the industry, he expressed confidence in Bardwell’s ability to lead Woolworths into the future.

Analysts reacted to the news with a mix of surprise and caution.

In financial terms, Woolworths’ food retail division reported a 5.2 percent increase in sales, or 6.6 percent excluding tobacco.

However, the company noted a moderation in prices, with average increases of 1.3 percent in the last three months of 2023.

Despite this, margins continued to improve, and earnings for the division rose by 8.2 percent.