Trust in Woolies and Coles plummets following Senate inquiry into price gouging
Accusations of price gouging and prioritising profits over customers have soured the reputation of our once cherished two major supermarkets, new data claims.
According to a report by Roy Morgan, Coles has plummeted from Australia’s fifth most trusted brand to become the 9th most distrusted brand on the list. Meanwhile, Woolworths, once consumers second most trusted brand, now sits at 34th place.
The report comes after a Greens-led Senate inquiry called for price gouging to be a criminal offence in terms similar to the European Union provisions.
While Aussies are feeling the pinch of the cost-of-living crisis, Woolworths and Coles reported a staggering combined $80 billion in revenue for the 2023 financial year. However, Woolworths’ share price has fallen 22.5% since mid-June last year.
Roy Morgan CEO Michele Levine said she has never seen a reputational crash quite dramatic.
“The leaders of both Coles and Woolworths stood up at the beginning of the pandemic, recognising it as a national crisis that needed emergency action and throughout the months that followed, with lockdowns, supply shortages, and general panic, they consistently did whatever was needed to keep the stores open and safe,” she said.
“However, after lockdown, Australia emerged to a very different economic environment, and in my view, the major supermarkets failed to recognise the exploding cost-of-living pressures as a genuine crisis, and now they’re paying the price.”
Earlier this year, Woolworths found themselves in hot water after announcing their decision to ditch Australia Day stock. Woolworths CEO Brad Banducci defended the controversial move, telling Sunrise hosts he wasn’t trying to “cancel” Australia Day.
Since then, Banducci announced he would be stepping down as CEO this September, while he was also threatened with prison time during last month’s Senate inquiry.
Woolworths delivered results well below expectations for the first three months of the calendar year, with group sales up just 2.8%, Australian food sales up 1.5%, and Big W down 4.1%. In comparison, Coles posted a rather pleasing 3.4% rise, with food sales up 5.1%.
Roy Morgan surveys approximately 2,000 Australians every month to measure levels of trust and distrust of around 1,000 brands across 26 industries.
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Down, down – trust is (unsurprisingly) down.
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Why do you need to join their membership to get discounts ?
would you really trust them with your personal information ?
why not discount for everyone who shops with them!
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