Fed-up Australians have declared they have lost their faith in Woolworths and Coles — deeming them the least trusted brands in the country. According to the latest survey conducted by Roy Morgan, consumers have named Woolworths as the most distrusted brand, replacing Optus, with Coles following closely behind.
This dramatic shift marks the highest level of distrust the supermarket giants have faced since Roy Morgan began tracking brand sentiment in 2017. Just two years after being celebrated as two of the most beloved brands, Woolworths and Coles now find themselves grappling with significant backlash.
According to Michele Levine, CEO of Roy Morgan, "Distrust has a far more potent impact on consumer behaviour than trust. While trust creates loyalty, distrust can drive customers away to more trusted brands. The reputational fall of Woolworths and Coles is a powerful reminder of the fragility of trust in today’s environment.”
Woolworths has acknowledged the need to rebuild trust amid the rising cost-of-living crisis. Amanda Bardwell, the company’s Managing Director and Group CEO, sent out a memo informing staff about the unfavorable title. “Customers have been so patient with us as we continue to work hard to build back their trust,” she wrote, urging team members to relay feedback from shoppers. She emphasized, “Being the ‘most distrusted brand’ is not a reflection of how our customers feel about us when they shop locally.”
Notably, this memo came with its own share of controversy after being leaked by an angry Woolworths employee who accused the company of attempting to “gaslight” staff. The anonymous employee questioned the integrity of the company’s pricing, arguing, “They ARE ripping you off,” alleging misallocation of funds to cover massive corporate overheads.
The survey’s timing coincides with previous scrutiny over grocery pricing practices. Recently, the Australian Competition and Consumer Commission (ACCC) announced legal action against both superstores for alleged breaches of consumer law, igniting concerns about transparency and fairness.
Meanwhile, consumer trust has shifted significantly, particularly following unprecedented times during the COVID-19 pandemic when Woolworths and Coles earned record levels of consumer trust. Their CEOs became prominent figures of reassurance, widely appearing on media platforms and initiating initiatives addressing consumer needs.
Nevertheless, the goodwill cultivated during the pandemic swiftly evaporated as consumers became more aware of prices and began to connect perceived overpriced goods with corporate profits. According to Levine, “The goodwill they built during the pandemic has been reversed by perceptions of too profit-motivated and unaffordable pricing.”
From 2022 to 2023, Woolworths and Coles were lauded as Australia’s most trusted brands. By October 2024, Woolworths had plummeted 239 places on the trust scale, becoming the most distrusted brand, with Coles following closely behind, dropping 237 places. These changes highlight the volatility of consumer sentiment and the urgent consequences surrounding distrust.
Expert insights suggest the relationship between trust and consumer behavior is more acute than ever. Gary Mortimer, Professor at the Queensland University of Technology, emphasizes the importance of transparency, stating, "Willingness to provide transparent and relevant information is key to building and maintaining trust with consumers." Mortimer also points to the politicization of food prices as contributing to the negative perceptions of Coles and Woolworths.
Both brands face formidable challenges moving forward. Maintaining consumer trust is no longer just about competitive pricing; it involves ethical accountability and proactive consumer engagement. Mortimer believes these supermarkets will likely implement strategies focusing on more consistent pricing and leading promotional prices to restore confidence.
"Trust is more than just metrics; it's the foundation of loyalty," Levine warned. "Without it, even the most established brands are vulnerable to the power of consumer backlash, becoming fragile brands.”
The stakes are high, with consumer confidence and market stability hanging in the balance as Woolworths and Coles navigate these turbulent waters. To regain the trust of Aussies, they must sector now and embrace transparency and ethical practices. Only then might these erstwhile giants recover from this significant reputational fall.