‘A dramatic shift in consumer sentiment’: Woolworths and Coles are now the most distrusted brands in Australia
As the country steered its way out of the pandemic, Woolworths and Coles were Australia’s two most trusted brands.
Now, after allegations of price gouging during a cost-of-living crisis, workers striking after being treated like robots, and fake discounts scandals, Woolworths and Coles have recorded the highest distrust since Roy Morgan began tracking brand trust in late 2017 – in what the company calls “a dramatic shift in consumer sentiment”.
Woolworths has replaced Optus as the most distrusted brand in Australia, while Coles has the second-highest level of distrust on record.
“Distrust has a far more potent impact on consumer behaviour than trust,” said Roy Morgan CEO Michele Levine.
“While trust creates loyalty, distrust can drive customers into the welcoming arms of more trusted brands. The reputational fall of Woolworths and Coles is a powerful reminder of the fragility of trust in today’s environment.”
Levine noted how the pandemic “placed the major supermarkets at the centre of Australian lives”, leading to Woolworths and Coles regularly topping the trust index. “But the goodwill they built during that period has been reversed by perceptions of too profit-motivated and unaffordable pricing.”
In May, following disastrous Senate appearances from Coles and Woolies executives regarding price gouging allegations, Woolies plummets from second most trusted to 34th, while Coles moved from fifth most-trusted to ninth least-trusted, a drop of 221 places.
Since then, they have fallen quickly, overtaking Optus as the two least-trusted brands.
“Distrust is a virus for brands,” said. Levine. “It spreads quickly, and reversing it is a complex and multi-year challenge.
“For the big supermarkets, this means rethinking how they engage with and persuade Australians, particularly in times of economic pressure.”
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Nathan Jolly is the Features Editor at Mumbrella. He joined the team in July, 2023.
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F*CK Coles
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Woolies used to discount perishables to $1 to $3 the day before it expires for customers to purchase. Now they don’t. One of their employees told me that the instructions have come from the store manager itself, which means they’ve probably been instructed from above.
So the supermarket rather throw food out than let people buy it at discounted prices to feed their families?
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I work in the deli and give away free stuff to my friends and their parents. Sometimes I label crayfish as chicken necks.
Fight the power / wake up sheeple.
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Their duopoly needs to be broken up.
Bob Katter has put a bill before the parliament to limit each of their market shares to 20% with 5 years.
Unfortunately, no doubt, both Coles and Woolworths will make major donations to the LNP and ALP, the major parties will have a commission, the (non-binding) findings will be swept under the rug and they will continue to gouge us just as they did before.
This is a clear-cut case of market failure.
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The point as to where the profits of Aldi and Costco go is totally irrelevant. If those companies sell things at a price I can afford they deserve all the profit they can get. If the Aussie companies choose to screw us they deserve to be treated with the contempt that deserves
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“Coles announced its profits had increased by 4.8 per cent on the previous year to $1.09 billion while its sales revenue jumped by 5.9 per cent to $40.5 billion.”
Why are you trying to come up with excuses for them?
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It is Woolworths & Coles own doing overcharging customers when we are facing cost of living crisis. Some products have gone up as high as 40% and they are holding customers to ransom. It is just ‘greed’ as they are putting profits before customers – the ones who have helped their share prices up. Aldi is a better bet these days. Woolies & Coles, time to rethink what you have done or going to do going forward. Treat your customers with respect as we are your ‘bread & butter’
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Have any of these commentators above saying “its all about profit” for Coles/Woolies every actually looked up how much profit they make? I am guessing not, as its easy just to jump on bandwagons without anything as much as a fact to hand.
I have done the hard/easy work for you: look up the last financial statements for each and you will see for their supermarkets they make around 5-6% profit margin. And it has not really increased or decresed much over time. They are very slim profit margins by anyones standards. Go have a look at Macquarie Bank or BHP or CBA if you want to see compaies with high profit margins.
Coles & Woolies consistently front up to senate estimate enquiries and state because the cost of their inputs/suppliers have gone up, they have to raise their prices. Seems pretty clear and sensible to me, or anyone with the responsibilty of running a business. So long as they dont gouge consumers (which they dont, as evidenced by thier audited financial statements showing 5-6% profit margin).
So if we can all jump off the incorrect and oft-repeated accusation that they price-gouge consumers – it would be good to chat about the real underlying problems: cost of labour, cost of energy, cost of transport, cost of almost all every input to manufacturing & food processing increasing. How would you marketing geniuses suggest we solve those problems?
Or maybe its easier just to shout price gouging rather than utilise your brain.
And you guys wonder why no one takes marketing seriously.
Not a fact to hand in this discussion.
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The thing that irk’s me most about Coles and Woolworths, is they just don’t care what we think about their behaviour.
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Dear Elizabeth Bradshaw,
In response to your statement: “Their actual profit percentage on turnover is not huge.”
I’d say $1.7 billion can be considered “huge” enough.
Not to mention the Australian farmers who are continually screwed over by this duopoly.
Also, the ongoing pathetic actions of buying up property to prevent competiters moving in is just criminal.
Stop making excuses for their deplorable actions.
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I might add on top of this story. Coles and Woolworths as well as aldis will not tell you which of their meat lines come from farmers us8ng bovaer 10. I have contacted them many times and they won’t tell apart from they have been informed that bovaer 10 is not harmful. Yet the FDA in the US say it’s very toxic. So if there were nothing to hide, surely they would have no problem letting their shoppers know the truth. As it stands I no longer buy meat from any of the corporates.
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When they placed security cameras directly on me at the self-service checkout it was the straw that finally broke the camels back.
I have worked retail management, mainly supermarketing all my life up until 3 years ago, I was always benchmarked by customer service levels with ad-hoc mystery shopper reporting that gauged service levels.
These 2 rip-off merchants do not show any customer service support to their customers. No hello, thank you or kiss my arse reactions when shopping at their supermarkets.
Now they expect the customers to shop at their stores, treating every customer with security contempt.
They also expect you to put your baskets nearly inserted into a pile when you leave.
Several months ago, I decided to cut up both my Flybys and ERs card and take my business elsewhere.
I’ve stopped spending with these 2 permanently. They have lost approx $2,500 per month from me.
I am pleased they are now getting heavily scrutinised bt
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I have seen it for myself how coles are upping prices. Fake specials Eg pizza on a white tickets are non specials. Yellow are specials. When they say it’s on specials week before the same price was on the white ticket now same price on yellow ticket. No special at all. It’s disappointing and disgusting I hate working for coles now
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Australian owned supermarkets vilified by inquiry after inquiry. Their actual profit percentage on turnover is not huge. Mostly Australian produced goods stocked. A lot of “Mum and Dad” superfunds have shares in these Australian supermarkets.
One of the world’s richest German families owns Aldi. Where do their profits go?
Costco U.S. owned. Where do their profs go?
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Never pay for bags
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They don’t deserve our trust because it’s all about profit!
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As if we have a choice? Living in many different cities, Towns and states, i don’t see an option to go elsewhere? Also those markets are either as expensive or more, let alone the quality is also no good nor products unavailable. When creating such monsters we forgot about the competition which we are all paying for.
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Thought lets be honest, they both don’t give a flying F**K
What are you going to do, shop elsewhere lololol?
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With monopoly comes great responsibility. People will only respect any big players if they show they can be trusted.
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I always found it weird that they implemented all these self service checkouts, got rid of half their staff and yet all the prices of everything kept going up.
And in the end , there are so many security issues, that they nearly treat you as a thief just to shop there..
Even their so called sales now are that bad, that even the cheap junk food is almost unaffordable..
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Do thay not know that thay R only a warehouse
Thay do not grow/ or make things
So why do thay have so much POWER
Farmers/growers need to have a co op
So thay can set the price
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Coles eye/watering price-gouging. Greed. At the expense of all of us. Obvious discount cheating. Where is the government in all of this?
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It’s time to start going local again. Support local grocers and butchers. Start shopping at chains less, the duopoly that Woolies and Coles has on Australians needs to end.
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The media industry is full of people who never pay for bags
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How media play up and criticise supermarkets that went through a lot of stress at COVID times with rude dishonest people cheating each other to get every thing and more and leave old people and disability people out of essentials who could not get to shops early enough to get bread toilet paper etc. then the shoplifters at an all time high.
Think about how much groceries have risen due to natural disasters and other unforeseen circumstances.
Use common sense and think before you media send.
Shame on you and your false media coverages.
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On 30 June 2023, Woolworths share price was $39. Today it is $29. It seems that years of price gouging are not creating higher profits or share prices. Instead, we switch to Costco and Aldi and every cent in profits shifts overseas. Happy Australia Day everyone.
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Plenty of deck chair reorganising going on in WW at the moment. Didn’t some of their leadership come across from Optus? What a record to have been at the helm of not one but two of Australia’s most untrusted brands!
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The price gouging isn’t working, Woolies shore price was $39 in June 2023. Today it’s $29. We blame the supermarkets, maybe we should blame the manufacturers
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I went into an office in woolworths, stuck on his wall was a large poster for bananas special price of $2 a kilo. I said to the manager is this special on now…..he replied ( cause I seen the date on it)
Oh yes, I’ll get the girls to put up the ticket….it was already 3 days into the sale…on walking out I looked at the price they had up over $5 a kilo.
Making $3 or more on every kilo sold.😡
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Our house now religiously special shop at the big 2. Top that up with IGA specials then a few regular things at ALDIs. There is a new mob around us called Shop n Save which amazingly are cheaper than the rest consistently so we get the bulk of our shopping there. It’s a consuming task at times, but as I see it…. We are not contributing to a monopoly greed and every dollar saved is a dollar earnt these days. PS, we use the ShopFully app for planning.
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Can’t wait for more options (in addition to spudshed and Asian supermarkets) – would never trust Coles or Woolworths again. Australians own shares = zero care factor after watching both companies long term approach to business, farmers and consumers.
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Most products sold are Australian made , cost to produce the highest in the world. Employees want holidays, sick leave and super paid for by their employer . Costs like insurance, tax and investor dividends have to come from somewhere, so if they make to little profit they will go bust. Think what it would be like if both Woolworths and Coles where not around.
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Is this a paid advertisement?
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Nothing will change people will still go to Woolies and Cole’s even though they say I don’t trust them it’s the convenience of what’s closest .
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Some farmers barely see any profit yet prices of meats are sky high.
I’ve spoken to people involved in farming so it’s not an assumption.
Someone is making big money but it’s not the farmers.
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The Coles and Woolworths duopoly WILL END SOON. Peter Dutton has made it on of his mai n policy’s and he WILL follow through on it. We will get food at a cheaper rate than the duo say. There will be closures of their stores but ones such as Walmart, Tesco and the like will fill the gap. This time next year we will see how they cope with change in the markets.
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Woolys are the worst they also have no respect for you
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It’s not unusual for villains to be vilified, and the results of enquiries speak for themselves. I’ve been happy to redirect essentially all of my shopping to my local IGAs, and the increased traffic in-store are my anecdotal proof that I’m far from alone. Although I stopped buying meat from Woolworths during lockdown, as the quality was deplorable.
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You can add some of their supply partners aswell.
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As a consumer I don’t like woolworths and Coles anymore
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I have been a loyal customer for over 25 years with Cole’s not anymore. Sick tired of their lying.
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And here l thought the most distrusted in Australia would be all forms of governments and councils.
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I stick with ALDI, no one else
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Not to mention farmers shutting shop as they get paid way less than production costs
They are being told to sell their produce at a loss or we’ll get it somewhere else
They are ruthless!
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All they need to do is drop prices back to pre-pandenic levels.
Stop price gouging customers.
Offer genuine savings.
Treat the staff better.
All of this is easily affordable by removing Executive Management bonuses until the trust has returned. Maybe sack a few upper managers as well
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Coles and Woolworths sucks it’s not the people that work there it’s the CEO and share holders that are GREEDY for more dollars they really really suck
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I distrust woolworths and coles equally. I’ve been shopping at Drakes and do not intend shopping at Coles or woolworths again.
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Why is something 40% off dearer than what we paid 6 to 12 months ago. For instance earl grey tea 40 % off $11 I’ve never seen earl grey tea at $18.
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Where the profits go? Aldi profits are much less than local Coles and Woolworths. Go overseas. Does anybody believe the Coles and Woolworths profits are somehow returned to the ordinary people in Australia? Just ask the producers held by the throat at ransom, paid a pittance by these supermarkets. The quality of prepacked products is a disgrace, as the suppliers make every trick to hide de bad product. All this with the approval of the supermarkets management. We blame the Chinese products, but forget that the supermarket management sends their ruthless buyer personnel to import the crappiest product so here home can be sold at premium import price, to maximise their profits. Money grabbing monsters, with multi millionaire managers.
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I would just like to know how I can buy something like Zooper Dooper ice blocks for under $5 at Aldi yet they are $7.80 at Woolworths & $7.20 at Coles such a big mark up on 1 item
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They really paying these people to defend them online as not human garbage????
Pathetic
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Wow, people really got sucked in by the governments distraction from its atrocious financial management.
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This is actually great news! People are aware of the absolute significant cost increases and have had enough. My family have reduced our spending at both these giants. We support local butchers and fruit and veggies stores as much as possible! It actually gives you the opportunity to limit all the processed junk that makes up majority of the items found in Cole’s and Woolworths. It also gives local small businesses a chance to shine a little brighter again! Vote with your money.
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It’s not just the price gouging and dishonest “specials”, is also the appalling practice of slipping in full priced items amongst a bunch of specials to trick you into thinking they are on special too. I refuse to shop there anymore.
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Woolies are the biggest liars in retail
Worked for them for over 20 years. It was common knowledge top tier management were constantly looking for ways to pay staff less. The goal is to have all staff as bottom feeders earning as little as possible
Those savings don’t go to customers, it’s for managers to get their bonus
I’m so glad to see them falling down
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Before : Coles home brand cat food..1kg $3………………now $4.50
: Franks home brand 500 gr. $2.80…………now $3.30
Those are just a few home brand items gone up in the past 6 months
But this takes the cake. .Home brand choc ice cream were a bargain at $4…and still are $4 but the thieving bastards made the portions smaller and to top it off wrapped them in plastic !!!!!..not only cheating us in downsizing but not giving a toss about the environment. I’ve noticed an alarming trend that more and more people are buying home brand items and Coles and Woolworths are either downsizing those items and still charging the same price or charging more.
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