One of world’s largest retailers looking for a CEO
New York -- One of the world’s largest retailers has undertaken a search for a new CEO to execute a massive transformation. But getting to the interview will require U.S. executives to take a very long flight and the successful applicant will need good listening skills to decipher the accent of co-workers.
With annual revenues last year of roughly $57 billion USD, Australia’s Woolworths Limited would rank as the 10th largest U.S. retailer ahead of notable companies such as Lowe’s, Sears Holdings, Best Buy and Macy’s. Now the company is looking for a new CEO after Grant O’Brien announced plans to step down after nearly four years in the top job and 28 years with the company.
The interesting thing about his departure is that it was announced only one month after Woolworth Limited unveiled a three-year master plan to drive growth across its range of businesses.
“At the recent investor day we set out clear strategies to grow our businesses 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,” O’Brien said. “I approached the chairman and expressed to him that I am committed to a smooth transition to a new CEO and wanted to give the board sufficient time to consider its options.”
A global executive search process including external and internal candidates will be conducted by the Woolworths board to appoint a new CEO and O’Brien will continue to serve as CEO and managing director during this period, the company said in a statement. Despite its size, the Woolworths name in the U.S. has no cache and is best remember by retail historians for being an industry innovator in the early 1900s.
The situation is very different in Australia where Woolworths Limited is the dominant retail conglomerate and has no connection to the now defunct U.S. company. Woolworth’s is Australia’s dominant food retailer with 952 stores, a network of Big W discount department stores, a major online presence, 59 big-box home improvement stores under the Masters banner, 1,400 liquor stores and even a 330 unit hotel chain.
Whoever is tapped for the CEO role, the company has made it clear O’Brien’s successor is tasked with implementing the previously developed transformation strategy dubbed “Fuel for Growth” as opposed to developing a new approach.
“Whilst the board acknowledges that the company’s recent financial performance has been disappointing, it is committed to the plans and strategies outlined at the May investor day,” said Woolworths chairman Ralph Waters. “Successful execution of these plans will be the basis for continued long-term value creation for our shareholders.”
For an overview of Woolworths operations and strategies to address key challenges, click here.