Woolworths Detaches Big W from Common Technology Framework

Quick Read

• Woolworths Group is isolating Big W from its collective tech framework.
• This decision responds to Big W’s $35 million loss in 2025.
• Big W will shift to an independent, purpose-built platform.
• Growth in online visits despite financial downturn signifies potential expansion areas.
• Woolworths intends to develop a new automated fulfilment center in Melbourne.

Big W’s Digital Shift

Woolworths Group has revealed intentions to detach Big W from its collective technology framework, moving the department store to a “standalone, purpose-built” platform. This strategic initiative aims to boost Big W’s operational effectiveness following a considerable financial decline.

Economic Hurdles and Possibilities

The move comes after Big W’s reported $35 million loss for the 2025 financial year. In spite of the loss, online engagement saw a significant rise, with traffic to Big W’s website and app increasing by over 20%. This upswing was fueled by the expansion of its product selection via MyDeal and new seller collaborations.

Executive Perspectives

Amanda Bardwell, CEO and Managing Director of Woolworths Group, recognized the obstacles while also emphasizing growth potential in areas like pet care and health and beauty. “Our aim is to provide Big W with the proper foundations for success,” Bardwell remarked during the group’s earnings announcement.

Technological Advancements

Previously, Big W was integrated into Woolworths Group’s transition of its SAP applications to Microsoft Azure in 2022. The group is also progressing in its shift from the 20-year-old SAP ECC5 system to S4/HANA, anticipated to complete by 2026.

Growth Initiatives

To further enhance its operational capabilities, Woolworths Group announced plans for a new automated customer fulfilment center in northern Melbourne. This facility aims to increase order capacity and improve delivery times utilizing Knapp automation technology.

Woolworths’ Overall Financial Status

Overall, Woolworths Group concluded the year with a strong financial performance, recording a net profit after tax of $1.4 billion, supported by $69 billion in revenue.

Summary

Woolworths Group’s tactical decision to separate Big W from its shared technology framework is designed to tackle financial challenges and enhance the performance of the department store. By shifting to an independent platform, Big W is ready to seize growth opportunities across various sectors, backed by cutting-edge technology and improved operational capacity.

Q&A

Q: Why is Woolworths detaching Big W from its shared tech framework?

A: Woolworths is taking this step to improve Big W’s operational efficiency and tackle its financial obstacles by transitioning to a standalone, purpose-built platform.

Q: What led to Big W’s $35 million loss in 2025?

A: Even with increased online traffic, Big W encountered financial difficulties due to various operational issues, leading Woolworths to revamp its systems.

Q: How is Woolworths planning to enhance Big W’s performance?

A: Woolworths is set to implement an independent technology platform for Big W, concentrating on growth sectors such as pet care and health and beauty, as well as constructing a new automated fulfilment center.

Q: What technological improvements is Big W undergoing?

A: Big W is in the process of transitioning its SAP applications to Microsoft Azure and is projected to complete the migration to S4/HANA by 2026.

Q: How did Woolworths perform financially overall?

A: Woolworths Group reported a net profit after tax of $1.4 billion, with total revenue reaching $69 billion.