Australian retailer Woolworths has reported a loss of A$1.235bn in the financial year ending 26 June 2016.
CEO Brad Banducci attributed the significant loss to Woolworths' year of “unprecedented change”, including efforts to regain its competitiveness against other retailers by lowering prices, investing in better service and improving store experience.
“The decisions we have taken and investments we have made have had a material impact on our FY16 results but have been necessary to begin the rebuilding of Woolworths,” Banducci said. “Top of my five priorities is getting our customers to put us first and making the right business decisions to enable this to happen.
“We are regaining competitiveness with improving customer metrics and sales and transaction growth demonstrating our customers are recognising our investment in lower prices, better service, fresh fruit and vegetables and improved store experience. Our improving team engagement scores show we are also changing our culture for the better.”
Banducci said the turnaround plan would take three to five years, with the 2017 financial year expected to be highly competitive as well.
Part of the turnaround is becoming a leaner retail business, with 500 support office roles already cut.