The supermarket giant, celebrating its 100th anniversary on December 5, has grown into the country's largest supermarket chain, with a net worth of $42.97 billion as of September 19, 2024. 

However, recent controversies surrounding the complexity of Woolworths Group’s operations have led to a significant profit decline.

On 28 August, Woolworths Group reported a dismal $108 million net profit, a staggering 93 per cent drop from the previous year. 

The sharp fall was largely due to poor performance across the Tasman, where earnings from the New Zealand division plummeted by 57 per cent, leading to a $1.5 billion loss.

Woolworths' investment in Endeavour Group, which operates Dan Murphy’s and BWS, also contributed to an overall loss of about $100 million. 

Without these financial burdens, the group's profit drop was a mere 0.6 per cent compared to FY23, resulting in a $1.7 billion profit. 

According to the Australian Financial Review (AFR), Dushko Bajic, a portfolio manager at global firm First Sentier Investors, delivered a clear message to Woolworths’ new CEO Amanda Bardwell during a recent meeting.

“We would just love you to be a simple Australian supermarket,” Mr Bajic recalled telling Ms Bardwell. 

Mr Bajic, whose firm holds a modest stake in Woolworths, also expressed hope that the new CEO would offload Big W, describing it as a “business within the (Woolworths) portfolio that’s just destroyed capital”.

In an interview with the AFR, Ray David, portfolio manager at Blackwattle Investment Partners, suggested that Woolworths' New Zealand supermarkets could also be sold due to their underperformance.

“In theory, Woolworths should be the superior business given its scale, greater network density and control of end-to-end online logistics fulfilment,” said Mr David.

“We are advocates of simpler leaner business, as sometimes the essence of strategy is choosing what not to do, and we would welcome any strategy that simplifies the business that brings a greater focus on the core.”

The supermarket giant has dismissed the speculation. 

"We have no plans to sell Big W or our NZ supermarket businesses," a spokesman said.

Woolworths has owned Big W since 1976, opening its first store in Tamworth, NSW.

The company has also maintained a presence in the New Zealand grocery market since 2005.