Woolworths CEO Brad Banducci to retire as supermarket giants face major scrutiny

Woolworths CEO Brad Banducci will step down from the position in September this year, the supermarket giant says, confirming a change in leadership as the nation’s biggest grocery chains come under intense scrutiny from regulators and lawmakers over their pricing practices.

Banducci is set to retire, Woolworths Group announced Wednesday morning, capping off eight and a half years as group CEO and a 13-year stint within the company.

Amanda Bardwell, who currently serves as managing director of the business’ digital innovation wing WooliesX, will step in as managing director and group CEO from September 1.

Bardwell’s appointment comes after an “international search process supported by external consultants,” said Woolworths Group chair Scott Perkins.

News of Banducci’s departure also arrives at a difficult moment for Woolworths and chief competitor Coles, both of which are facing political and regulatory pressure regarding their on-shelf prices and profit margins.

The Treasury, the Australian Competition and Consumer Commission (ACCC), and a Senate inquiry are all probing the big-name supermarkets and the policies they operate under, as the cost of living soars for consumers and the businesses that supply those chains.

Four Corners interview puts CEO in spotlight

Those issues reached a public crescendo this week when Banducci defended Woolworths’ business practices in a contentious edition of ABC’s Four Corners.

In the broadcast, ABC journalist Angus Grigg referenced former ACCC chief Rod Sims, who said Australia has one of the most concentrated supermarket environments in the world.

Banducci appeared to challenge the assertion, saying Sims is “retired” and that “the world has got much more competitive”.

When Grigg countered that Sims only retired in 2022, Banducci requested the Four Corners team cut that discussion from the final broadcast.

Grigg said the comments were filmed on the record, causing Banducci to temporarily depart the interview.

Interview shrouds retirement statement

Four Corners also interviewed Coles CEO Leah Weckert on-camera for the story, but media and communications experts say Banducci’s walkout was a pivotal moment in the broadcast – and made the CEO the public face of a broad market issue.

In his Unmade newsletter, published after Four Corners aired but before news of Banducci’s retirement broke, Mumbrella founder Tim Burrowes said the incident “provided the ABC with the perfect teaser for what might otherwise have been the dry topic of supermarket pricing power”.

“The clip will always be a part of Banducci’s career story,” Burrowes continued.

While acknowledging the soundbite’s public perception, crisis communications consultant Sally Branson Dalwood told SmartCompany factors beyond the interview would have contributed to Banducci’s retirement.

Banducci himself has supported that view.

In a statement shared to the Woolworths team and subsequently shared to his personal LinkedIn account, Banducci did not refer to the Four Corners interview, instead saying he had considered his departure for some time.

He said the decision was “Not because I am tired or burnt out (I am as energised by our business and our potential as I have ever been)”.

Nor was the decision due to “the various upcoming price inquiries (I am looking forward to effectively representing Woolworths at these important forums)”.

Instead, Banducci said “a leader should go before they need to and, more importantly, because I believe passionately in the amazing talent in our Group and it is time to pass on the baton”.

Regardless, announcing the decision so soon after the broadcast will tie the two events together in the minds of Australian consumers, Branson Dalwood told SmartCompany.

“I don’t think the media issue was the cause, but it could have been a significant contributing factor,” she said.

“But to the general public, who aren’t across the Senate inquiry, or aren’t across the supermarkets’ inquiry from the ACCC, it seems that the media misstep was the catalyst for a resignation.

“It’s a really tricky situation to be in.”

Leaders must brace themselves for crisis

While acknowledging her own business interests, Branson Dalwood said the episode also showed the importance of specific crisis communication training for leaders.

The broadcast should also serve as a refresher to ‘on the record’ rules, she said, reflecting the agreement between interviewer and subject that comments made while cameras and microphones are rolling can be published.

“I’m not saying it’s a failure of his team, or a failure of the producers, or his failure, but it’s about being really clear on rules of engagement,” she said.

“Set piece interviews, particularly on the ABC, demand preparation,” Burrowes said.

Despite the high-profile news of Banducci’s departure, the announcement does not guarantee his instant disappearance from the brand.

As Banducci’s tenure at Woolworths ends in September, there may still be time for him to contribute to a hostile Senate inquiry before it tables its final report in May.