Woolworths and Coles face trust crisis—here’s how $4.1 billion could be the tipping point
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Supermarkets play a central role in our daily lives, but when trust is shaken, the consequences can be far-reaching.
One shopper’s quiet decision to walk away from two of Australia’s biggest retailers speaks to a growing national sentiment.
What unfolded from there sheds light on deeper issues affecting both consumers and the country’s retail landscape.
Supermarkets are a fixture of Australian life—but for some shoppers, their loyalty has come to an abrupt end.
Ella Reed counted herself among a growing number of Australians who had ‘broken up’ with Coles and Woolworths.
She shared: ‘I knew as a large corporation that maybe they weren't always above board.’
It was the ABC’s Four Corners that pushed her to take a stand, highlighting everything from worker strikes to behind-the-scenes practices like phantom brands, dark stores, and supplier treatment.
‘[But] after seeing, particularly, the Four Corners investigation, seeing the strikes from the team members...I just decided...I had to stop shopping with them,’ she said.
Reed hadn’t set foot in either supermarket in nearly a year.
She redirected her grocery habits toward local greengrocers, independent stores, farmers markets—and even started growing some of her own food.
While she acknowledged businesses need to profit, she didn’t believe it should come at the cost of staff, customers, or suppliers.
‘I couldn't put their consumer blindness aside anymore,’ she said.
Her trust in Coles and Woolies had been ‘severed forever’.
‘I see it as almost a transactional concept in that if I was to go bungee jumping, I would trust that the person that's strapping me in knows how to do that, and if they didn't, that's probably not the best outcome for me,’ she added.
She wasn’t alone.
A Yahoo Finance poll of more than 7,600 readers found 46 per cent were shopping less at the major supermarkets due to price gouging concerns.
Another 25 per cent had discovered alternative places to buy groceries.
While Yahoo Finance aired its findings, the consumer watchdog released a 441-page report that concluded price margins had risen, though not excessively.
Despite the defence put forward by Coles and Woolworths, backlash continued to mount.
Both supermarket giants were battling multiple class action lawsuits and facing a Federal Court case over their pricing practices.
The fallout was immediate.
Roy Morgan revealed the two chains had become the most distrusted brands in Australia, a sharp reversal from their top rankings for trust in 2022 and 2023.
Roy Morgan CEO Michele Levine said: ‘Distrust is a virus for brands. It spreads quickly, and reversing it is a complex and multi-year challenge.’
She said the supermarkets would need to ‘rethink how they engage with and persuade Australians, particularly in times of economic pressure’.
The financial damage didn’t stop at reputation.
Brand Finance Australia recorded a combined drop of $4.1 billion in brand value for the two supermarkets since the previous year.
Woolworths’ brand value stood at $12.7 billion, while Coles came in at $8.4 billion.
Managing director Mark Crowe said it was the biggest fall he had seen in years.
Yet both companies remained among the most valuable in Australia—with Woolies in second place behind Commonwealth Bank, and Coles ranking fifth.
Crowe explained the reason shoppers might continue to visit despite their misgivings.
‘When it comes to supermarkets, the biggest driver of consideration is not necessarily reputation, but physical location,’ he said.
He noted that even with negative sentiment, many people still felt they had no real alternatives.
But he also warned that without efforts to rebuild trust, the reputational damage could eventually reach their bottom line.
Coles and Woolworths have been contacted for comment.
In a previous story, we explored some of Woolworths’ recent moves that might have surprised customers.
Now, the supermarket chain is making an unexpected confession about paper bags in select states.
Read on to learn more about this latest development.
With trust in Australia’s biggest supermarkets waning, do you think consumers will continue to shift towards independent stores and local markets? Let us know your thoughts in the comments.
One shopper’s quiet decision to walk away from two of Australia’s biggest retailers speaks to a growing national sentiment.
What unfolded from there sheds light on deeper issues affecting both consumers and the country’s retail landscape.
Supermarkets are a fixture of Australian life—but for some shoppers, their loyalty has come to an abrupt end.
Ella Reed counted herself among a growing number of Australians who had ‘broken up’ with Coles and Woolworths.
She shared: ‘I knew as a large corporation that maybe they weren't always above board.’
Aussie shopper quits Coles and Woolworths over trust issues. Image source: SBS
It was the ABC’s Four Corners that pushed her to take a stand, highlighting everything from worker strikes to behind-the-scenes practices like phantom brands, dark stores, and supplier treatment.
‘[But] after seeing, particularly, the Four Corners investigation, seeing the strikes from the team members...I just decided...I had to stop shopping with them,’ she said.
Reed hadn’t set foot in either supermarket in nearly a year.
She redirected her grocery habits toward local greengrocers, independent stores, farmers markets—and even started growing some of her own food.
While she acknowledged businesses need to profit, she didn’t believe it should come at the cost of staff, customers, or suppliers.
‘I couldn't put their consumer blindness aside anymore,’ she said.
Her trust in Coles and Woolies had been ‘severed forever’.
‘I see it as almost a transactional concept in that if I was to go bungee jumping, I would trust that the person that's strapping me in knows how to do that, and if they didn't, that's probably not the best outcome for me,’ she added.
She wasn’t alone.
A Yahoo Finance poll of more than 7,600 readers found 46 per cent were shopping less at the major supermarkets due to price gouging concerns.
Another 25 per cent had discovered alternative places to buy groceries.
While Yahoo Finance aired its findings, the consumer watchdog released a 441-page report that concluded price margins had risen, though not excessively.
Despite the defence put forward by Coles and Woolworths, backlash continued to mount.
Both supermarket giants were battling multiple class action lawsuits and facing a Federal Court case over their pricing practices.
The fallout was immediate.
Roy Morgan revealed the two chains had become the most distrusted brands in Australia, a sharp reversal from their top rankings for trust in 2022 and 2023.
Roy Morgan CEO Michele Levine said: ‘Distrust is a virus for brands. It spreads quickly, and reversing it is a complex and multi-year challenge.’
She said the supermarkets would need to ‘rethink how they engage with and persuade Australians, particularly in times of economic pressure’.
The financial damage didn’t stop at reputation.
Brand Finance Australia recorded a combined drop of $4.1 billion in brand value for the two supermarkets since the previous year.
Woolworths’ brand value stood at $12.7 billion, while Coles came in at $8.4 billion.
Managing director Mark Crowe said it was the biggest fall he had seen in years.
Yet both companies remained among the most valuable in Australia—with Woolies in second place behind Commonwealth Bank, and Coles ranking fifth.
Crowe explained the reason shoppers might continue to visit despite their misgivings.
‘When it comes to supermarkets, the biggest driver of consideration is not necessarily reputation, but physical location,’ he said.
He noted that even with negative sentiment, many people still felt they had no real alternatives.
But he also warned that without efforts to rebuild trust, the reputational damage could eventually reach their bottom line.
Coles and Woolworths have been contacted for comment.
In a previous story, we explored some of Woolworths’ recent moves that might have surprised customers.
Now, the supermarket chain is making an unexpected confession about paper bags in select states.
Read on to learn more about this latest development.
With trust in Australia’s biggest supermarkets waning, do you think consumers will continue to shift towards independent stores and local markets? Let us know your thoughts in the comments.
