Woolworths CEO Brad Banducci Resigns Amid Price-Gouging Allegations
20 February 2024, Updated 1 hour ago
Resignation of Brad Banducci
Woolworths boss Brad Banducci has announced his resignation, amidst rising scrutiny over alleged price-gouging tactics employed by the Australian supermarket giant. In a statement released to the Australian Stock Exchange (ASX) today, Woolworths Group confirmed Mr. Banducci will officially retire in September. At 59 years of age, he has spent 13 years at Woolworths, serving as its CEO for eight of those.
The pressure on Mr. Banducci intensified this week after what has widely been described as a disastrous interview. The Woolworths CEO walked out on a reporter, displaying clear discomfort in response to the line of questioning.
Price-Gouging in Australia’s Grocery Market
Australia currently has one of the world’s most concentrated grocery markets. In this space, Woolworths, the nation’s largest retailer, and its counterpart Coles, dominate with a market control of 65%. Both supermarket chains have been under intense scrutiny and have faced severe criticism over their business practices in light of the ongoing cost-of-living crisis in the country.
Much of the criticism has revolved around accusations of price-gouging and unfair dealings with suppliers and farmers. On Monday night, the Australian Broadcasting Corporation aired an investigation exposing alleged price-gouging tactics by both Coles and Woolworths, leading to parliamentary inquiries and an investigation from the nation’s competition watchdog.
The investigation by Four Corners reporter Angus Grigg shed light on the lack of competition in the Australian market and drew attention to the supermarkets’ pricing practices. During an interview, Brad Banducci’s reaction and response to the matter were considered as startling, further intensifying accusations against the company.
Succession and Financial Performance of Woolworths Group
Board Chair Scott Perkins praised Brad Banducci’s leadership, stating that history will judge him as one of the company’s finest leaders. With his departure, Amanda Bardwell, the head of e-commerce at Woolworths Group, will succeed him as the new CEO.
In their financial statement to the ASX, the company disclosed an impressive half-year profit of AUD 929 million (£482; $608 million), largely fueled by the growing margins on its food businesses. However, the firm registered an overall loss of AUD 781 million due to the devaluation of two of its businesses.
Woolworths Group, with its diverse range of businesses spanning Australia and New Zealand, owns popular ventures such as discount department store Big W, liquor chain BWS, and the New Zealand grocery chain Countdown.
