Woolworths CEO transition marks new chapter for SA retail giant

Woolworths

Cape Town – Woolworths has entered a new leadership chapter after Sam Ngumeni officially took over as CEO on 1 June 2026, replacing Roy Bagattini, whose five-year tenure was marked by major restructuring, external shocks, and mixed results.

Ngumeni steps into Woolworths’ top role at a challenging moment for the retailer, which is grappling with supplier tensions, unusual incidents at some of its stores, and an ongoing effort to turn around its underperforming clothing business and Australian operations.

According to Daily Investor, Bagattini led the retailer from February 2020, a period that coincided with the Covid-19 pandemic, global supply chain disruptions, and domestic instability. During his leadership, Woolworths’ Food division remained strong, while its Fashion, Beauty and Home (FBH) segment and Australian operations struggled for much of the period.

A major focus of his tenure was turning around the struggling Australian business, particularly David Jones. After years of financial pressure, Woolworths exited the asset in 2023 at a significant loss, but also reduced liabilities and improved its balance sheet position.

Despite setbacks, Bagattini oversaw improvements in cash flow, debt reduction, and shareholder returns, including a major buyback programme and dividend growth in certain periods. However, parts of the business continued to underperform, particularly the Country Road Group, which remains a concern.

Ngumeni inherits a business that is once again split in performance: a strong Food division, a recovering FBH segment, and ongoing uncertainty in Australia. Recent results show sales growth in some areas but continued pressure on margins and profitability, the report said.

He is not new to Woolworths, having joined in 2008 and previously led the highly successful Food division. His appointment is seen as a continuation of internal leadership, with expectations that he will apply his Food business success across the wider group.

However, his early tenure begins amid operational challenges, including supplier disputes and store incidents, adding pressure to deliver results quickly.

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