The company is overhauling the operations of Big W and Petstock to improve profitability and simplify leadership. These changes come as Woolworths seeks to recover from a difficult year marked by falling earnings and reduced market share. Key executives will leave the business while remaining leadership will be realigned under new reporting arrangements. This is part of a wider effort to stabilise earnings and strengthen organisational focus.
Big W, previously a vital part of Woolworths’ retail network, has weighed down the group’s earnings. In 2025, Woolworths recorded a $346 million impairment against the discount retailer following weak full-year performance. The company will separate Big W from its supermarket IT systems and shift its reporting line directly to the group CEO, reflecting a renewed strategic emphasis. At the same time, pet and food service operations, including Petstock and PFD Food Services, will now report to the chief financial officer to improve effectiveness and accountability.
The corporate reshuffle involves several leadership exits, including the departure of the head of W Living. This division had included Healthylife, the now-closed MyDeal platform and the underperforming Petstock business. There has also been a leadership change in the New Zealand supermarket division, and Woolworths' private label portfolio will now be overseen by a newly appointed executive in Australia. These actions indicate an attempt to improve operational clarity and cut costs.
Despite the changes, challenges remain. Woolworths shares have dropped by nearly 20% since it released financial results showing a 12.6% fall in earnings before interest and tax to $2.8 billion for FY2025. In contrast, Coles reported a 6.8% rise in the same metric, adding pressure on Woolworths to improve performance. The company has implemented several cost reductions and invested $100 million in shopper-focused initiatives, though customer migration to Coles and Aldi has yet to be reversed.
Woolworths is aiming for earnings growth in its Australian supermarket operations this year and hopes to return Big W to profitability. While initial signs indicate a shift in strategic direction, whether these changes will help narrow the gap with competitors remains uncertain.
