Woolies in executive shake-up

As part of the changes, supermarket veteran Naum Onikul will retire after 21 years and be replaced as director of food, liquor and petrol by Greg Foran, general manager of the Woolworths-owned variety store, Big W.

Mr Foran's responsibilities will include the company's 780-strong supermarket chain, as well as the 89 Dan Murphy liquor stores and 522 petrol stations.

Mr Foran takes over as Woolworths' supermarkets business faces challenges on several fronts: renewed competition from the Wesfarmer-owned Coles, scrutiny over business practices by the competition regulator in the wake of the grocery price inquiry, and the general consumer malaise.

Mr Foran, 47, has worked in supermarkets since he started with Woolworths in New Zealand as an 18-year-old.

He worked in retail on both sides of the Tasman and in Britain, including leading the ultimately unsuccessful Australian operations of New Zealand retailer The Warehouse.

The promotion serves as a reward for Mr Foran, who guided Big W through what one analyst called a "near-death experience", using the approach to supply chains and internal systems favoured by Woolworths' supermarkets.

In 2004, the year in which he took over at Big W, the company reported sales of $2.7billion. In the year just finished, sales hit $3.9 billion, a 44% increase over four years. "His efforts in reformulating the BIG W strategy, re-branding and supply chain reform have driven the business to a competitive and successful position in the Australian market," said chief executive Michael Luscombe.

Mr Onikul also has spent a lifetime working in supermarkets, having joined Coles, aged 19, in 1965.

"He's a champion, but he's a champion of process. He's not the business himself," said an analyst, who did not want to be named.

The analyst said there was little risk of any succession problems because Mr Foran's credentials as a retailer were respected and because of the team behind him.

In the 2007-08 financial year the supermarkets division generated $40.3 billion sales, up 8.3% on a year earlier.

When the figures were released in July, Mr Luscombe indicated the company was continuing to gain market share despite the efforts of the new leadership team at Coles.

Julie Coates will fill the vacancy as head of Big W, while Geoff Thomas will fill Ms Coates' former role as chief logistics officer.

The company will release its first-quarter sales today, with ABN Amro analysts expecting 8.4% growth on a year earlier.

Woolworths shares rose $1.55 to $28.

KEY POINTS

Big W general manager Greg Foran to take over Woolworths food, liquor and petrol.

Chief logistics officer Julie Coates will replace Mr Foran as head of Big W.