Yahoo Finance How Woolworths CEO Brad Banducci's 'mini-tantrum' spelt the end for supermarket boss
A credibility expert has unpacked the moment everything “went sideways” for Woolworths CEO Brad Banducci.
A "mini tantrum" marked the moment things "went sideways" for Woolworths CEO Brad Banducci, according to a credibility expert, as he announces his resignation after nearly nine years in the top job.
While Woolworths claimed Banducci’s resignation was not connected in any way to the Four Corners interview, one expert said both the supermarket and the CEO were “paying the price” with the reputational damage caused by the interview.
Banducci momentarily walked off while facing a grilling over allegations of price gouging and a question about former consumer watchdog chair Rod Sims.
Do you have a story to share? Contact tamika.seeto@yahooinc.com
“He was defensive and slightly angry from the start [of the interview],” credibility expert Neryl East told Yahoo Finance.
“It was never going to be a pretty situation or a positive story. However, it’s so important for any leader stepping up in a difficult situation to manage their personal state.”
East said Banducci was “caught out” on some fairly key issues and wasn’t “prepared to be as authentic” as he needed to be.
RELATED
Woolworths CEO 'walks out' of ABC grilling: 'I shouldn't have said that'
Coles and Woolworths 'easy scapegoats' as supermarket price-gouging claims escalate
“To have a mini tantrum, to say things that you then want to strike from the record. He was chugging from a water bottle while the questions were coming in. It was just all wrong,” East said.
“I don’t know what happened between the preparation and execution but something did. The bottom line is, if you’re the CEO and you’re stepping up to face the music and answer questions … you’ve got to be able to deliver authentically. You’ve got to have a degree of humility, a degree of connection with the audience and ordinary Australians.
“I didn’t see any of that with him, unfortunately. He just got triggered by those questions and then it all went sideways from there.”
East said Banducci’s personal credibility and the brand credibility of Woolworths had taken a hit from the interview.
“It is possible to deliver bad news and still maintain your credibility and still build trust,” she told Yahoo Finance. “Unfortunately, in that instance, he didn’t succeed in doing that and the brand - and perhaps himself individually - will pay the price for that, reputationally, for a while.”
Monday night’s episode of Four Corners reached a lot of Aussies. It was watched by a national TV audience of 916,000 and another 52,000 watched on-demand. The viewership was bigger than Australian Idol and Australian Survivor, but still behind Married At First Sight.
Banducci was reportedly paid an annual salary of more than $7 million in his tenure and leaves the supermarket after nearly nine years as CEO.
Banducci along with Coles CEO Leah Weckert have been thrust to the forefront of the cost-of-living crisis and inflation debate - with the supermarkets accused of price gouging and unfairly profiteering. Both supermarkets have denied they are price gouging.
Woolworths Group Chair Scott Perkins said the company had always planned to announce Banducci's retirement today and noted plans had been in place since mid-2023.
‘Uncomfortable’ sign in interview
There was another aspect of Banducci’s interview that also raised eyebrows among viewers - his decision to wear a Woolworths uniform with a ‘Brad’ name badge.
“I felt uncomfortable looking at that because it didn’t look natural to me,” East told Yahoo Finance. “I’ve never met that CEO and I don’t know if that is what he wore to work everyday. But I didn’t get the sense that that was the case.
“It felt not very genuine, probably because his manner did not match a friendly customer service person.”
Woolworths and Banducci also faced public criticism earlier this year after the company announced it would not be selling Australia Day merchandise.
As with Optus - whose CEO, Kelly Bayer Rosemarin, resigned after a network outage and was criticised for a lack of empathy - East said reputational damage could be a “cumulative process”.
“If there’s already some rumblings around the brand and questions about its reputation and credibility, every little misstep adds up to a bigger negative reaction,” she said.
Follow Yahoo Finance on Facebook, LinkedIn, Instagram and Twitter, and subscribe to our free daily newsletter.
