Woolworths was facing mounting pressure for radical change on Tuesday after Baugur, its largest shareholder, for the first time openly criticised the troubled retailer’s management.

Jón Ásgeir Jóhannesson, chief executive of the Icelandic investment firm, told the Financial Times in an interview that the group should stop spending money on ailing stores and said its management, led by chief executive Trevor Bish-Jones, should “get their act together”.