Woolworths investor proposes bold changes in Sydney meeting

At a recent forum in Sydney, major Woolworths investor Dushko Bajic proposed significant changes to the company, including divesting the Big W chain and separating New Zealand operations into a new entity. He expressed his views to new CEO Amanda Bardwell, emphasizing the need for Woolworths to simplify its business model to enhance profitability. Despite being larger than its main competitor, Coles, Woolworths has struggled with profitability, reporting a net profit of $1.7 billion, which was heavily impacted by a $1.5 billion impairment from its New Zealand operations. Bajic criticized Big W for its inability to compete effectively against discount retailers like Kmart and Target, which have captured significant market share in the discount department store sector. He noted that while Coles has streamlined its operations into food and liquor divisions, Woolworths has faced challenges with its diverse portfolio, leading to substantial losses. Other investors echoed Bajic's sentiments, suggesting that spinning off the New Zealand business could be beneficial. Woolworths holds a 37% market share in the Australian grocery sector, compared to Coles' 28%. However, the company has faced difficulties in recent years, particularly with value-conscious customers opting for cheaper alternatives. Despite these challenges, a Woolworths spokesperson dismissed the proposals as mere speculation, asserting that there are no plans to sell Big W or its New Zealand operations. As Amanda Bardwell takes over as CEO, maximizing returns will be a critical focus for both her and the investors. The company has acknowledged the struggles faced by Big W and its New Zealand operations but noted progress in their transformation plans, indicating a commitment to improving customer satisfaction and operational efficiency.