Woolworths chief executive Grant O'Brien has fallen on his sword on the back of disappointing sales for the supermarket giant.
The sudden announcement of O'Brien's retirement follows news that the company's sales were not seeing an improvement in the current quarter. The company has also confirmed it will slash 1200 jobs.
In a statement, O'Brien said: "At the recent investor day we set out clear strategies to grow our business over the next three years and we have been working hard to execute these plans."
"However, the recent performance has been disappointing and below expectations. I believe it is in the best interests of the company for new leadership to see these plans to fruition."
The news comes as the retailer commits to signing up to the voluntary Food & Grocery Code to protect suppliers which has been operating since March and which has just become law.
ALDI says it was the first to formally sign the code with Woolworths pledging to do likewise, leaving Coles and IGA's wholesale supplier Metcash still yet to commit.
Metcash is reportedly “trialling” the code for 12 months first, while Coles is expected to formally commit to the code soon.
An ALDI spokesperson said: “We have always supported the concept of a strong and sustainable Australian grocery industry for retailers and suppliers. ALDI’s commitment to opt in to and implement the Code before any other major supermarket is testament to our business values and dedication to quality supplier relationships.”
The Australian Food and Grocery Council (AFGC) applauded Woolworths for agreeing to the code and for its role in its creation.
“We congratulate Woolworths for agreeing to the Code as an industry-led solution to problems impacting on suppliers and consumers,” said AFGC chief executive, Gary Dawson.
“Woolworths has been instrumental in establishing this Code with the AFGC. It was the willingness of Coles and Woolworths to come to the table and develop a meaningful Code that has made it possible.”
