Steve Johnson formally took over as Woolworths chief executive on Monday and has pledged to act fast to improve the variety store group.

He dismissed speculation that changes would not be made until a full review had been undertaken, and said: “We will not be spending the next six months gazing at our navels. There are basic disciplines that Woolworths is not as good at as customers expect it to be.”

Johnson is likely to build on Woolworths’ value heritage and is confident the famous high street name still has legs. “I believe this brand still has a huge amount of saliency with a vast breadth of consumers in this country,” he told Retail Week.

Iceland founder Malcolm Walker is interested in buying Woolworths with backing from Icelandic investor Baugur, but the retailer has dismissed his initial proposal. Leading shareholder Ardeshir Naghshineh backed Woolies’ rejection of the offer.