The CEO of a major Australian supermarket chain has announced his resignation amid controversy over alleged price-gouging tactics used by the company. The pressure on the chief intensified after a disastrous interview where he walked out on a reporter. Australia has one of the world’s most concentrated grocery markets, with the two largest retailers controlling 65% of the market. The company has faced intense criticism over their business practices as the country battles a cost-of-living crisis.
In a statement to the Australian Stock Exchange (ASX), the company announced the CEO’s retirement and the appointment of a new leader. The 59-year-old CEO has spent 13 years at the company, eight of them at the helm. The company also announced a massive half-year profit, but recorded an overall loss due to write-downs in the value of two of its businesses. The supermarket chain faces multiple parliamentary inquiries and an investigation from the nation’s competition watchdog over pricing practices.
The announcement of the CEO’s resignation comes after an investigation aired on the Australian Broadcasting Corporation, which accused the supermarket chain of price-gouging and unfair dealings with suppliers and farmers. The reaction of the CEO during the interview was described as “startling” by a reporter, indicating that the company is not used to having much scrutiny.
The company owns an array of businesses across Australia and New Zealand, including discount department store Big W, liquor chain BWS, and the New Zealand grocery chain Countdown. The new CEO will take over in September, and the company remains under intense scrutiny over its business practices.
