Sally Macdonald, who is credited with driving the turnaround of Oroton, will take charge of Big W and EziBuy's 22,000 staff and 190-strong store network. Photo: Jon Reid
Woolworths has installed former Oroton boss Sally Macdonald to spearhead a planned "transformation" of discount department store Big W.
Ms Macdonald, who is credited with driving the turnaround of Oroton and guiding the listed fashion business back to profit, will take charge of Big W and EziBuy's 22,000 staff and 190-strong store network.
Persistent rumours of private equity interest in Big W were all but put to bed by Woolworths' chairman at the retailer's recent annual general meeting. Gordon Cairns said the focus was on improving Big W's performance to broaden the options for the business.
First-quarter same-store sales at Big W slumped 8.1 per cent, compared with 8.6 per cent like-for-like sales growth at Wesfarmers' Kmart and a 3.2 per cent improvement in sales at Target over the same period.
During her time at Oroton, Ms Macdonald sold three businesses, launched an online operation and pushed the retailer into international markets and new product categories.
Woolworths chief Grant O'Brien said Ms Macdonald had a track record of transforming retail companies.
"Her strong knowledge of retail and consumer-branded markets, as well as her online experience, make her the ideal leader for Big W," Mr O'Brien said.
Big W has suffered from a lack of clear brand identity, according to retail analysts, who point to Kmart boss Guy Russo's success in repositioning Kmart and its ownership of the bottom end of the discount department store sector.
Mr Russo recently revealed he had a hit list of about 50 Big W stores he would like to convert to Kmarts and said the landlords had already been contacted.
Wesfarmers' Target is also showing signs of improvement at the top of the discount department store market, but the sector is under pressure from the expansion of international brands like H&M as well as the creep of the discount supermarkets into general apparel.
Ms Macdonald said she was excited to be leading a change program at Big W and EziBuy.
"Whilst it is a competitive retail landscape, I believe Big W is a great Australian brand that has tremendous scale, represents tremendous value for customers and holds much potential for growth," Ms Macdonald said.
"Ezibuy is also a solid platform for growth."
Ms Macdonald will start with Big W in January and report to Woolworths' outgoing chief, Mr O'Brien, while the search for a new chief executive continues.
More to come
