Coles and Woolworths Lose Public Trust Amidst Cost of Living Concerns

Coles and Woolworths Lose Public Trust Amidst Cost of Living Concerns

Coles and Woolworths, two of Australia's largest supermarket chains, have experienced a significant decline in public trust, according to a recent survey by Roy Morgan. This decline coincides with rising concerns about the cost of living and accusations of price gouging.

Coles, previously ranked as the fifth most trusted brand in December 2023, has fallen to the ninth most distrusted brand by March 2024. Similarly, Woolworths has plummeted from second on the list of most trusted brands to 34th.

Roy Morgan CEO Michele Levine attributes this decline to a failure by the supermarkets to address public concerns about the rising cost of living. Additionally, large revenue and profit announcements made by the companies in February further eroded public trust.

Levine notes that the context and public sentiment shifted significantly during this period, with media headlines focusing on the "mortgage rate crisis" and "cost of living crisis." This, coupled with accusations of price gouging, led to a sharp decline in trust for the supermarket giants.

Tasmanian Greens senator Nick McKim believes that the supermarkets are solely focused on maximizing profits, driven by the multi-million dollar salaries and bonuses of their CEOs. He argues that this focus on profits leads to price gouging and ultimately harms consumers.

The Australian government has commissioned a review of the supermarket sector, led by former Trade Minister Craig Emerson. The final recommendations are expected in June. Additionally, the Australian Competition and Consumer Commission is conducting its own investigation into competition within the sector, with a draft report due in August. These investigations may shed further light on the factors contributing to the decline in public trust for Coles and Woolworths.