Woolworths, once known as Australia’s most trusted brand, has been dethroned by household hardware chain Bunnings. This shift in consumer trust comes after a year of turbulence for Woolworths, which saw the company facing accusations of price-gouging and controversy surrounding its decision not to stock Australia Day products. Meanwhile, Bunnings has been praised for its efforts to gain consumer trust through exceptional customer service, community involvement, and expertise in its field.
According to a report by market research firm Roy Morgan, Woolworths slipped to second place among Australia’s most trusted companies in the 12 months leading up to December 2023. This marked the end of Woolworths’ three and a half year reign as the country’s most trusted brand. Coles, Woolworths’ rival supermarket chain, also experienced a decline in trust, falling from 3rd to 5th place in the rankings. Aldi, on the other hand, rose to the 3rd position.
The decrease in trust for Woolworths and Coles can be attributed to a growing disillusionment among Australian consumers with corporate behavior. Roy Morgan CEO Michele Levine highlighted increased distrust in corporations due to profiteering behaviors, unaffordable prices, dishonesty, unethical practices, and poor privacy practices. In contrast, Bunnings emerged as a trusted brand by embodying foundational pillars such as great customer service, clear communication of its values, active involvement in the community, problem-solving abilities, and expertise in its products.
The report also revealed Toyota as the only car manufacturer to make it into the top 10 most-trusted brands, climbing one spot to 7th place. Meanwhile, Apple, Big W, and Australia Post maintained their positions in the rankings. Optus remained Australia’s most distrusted brand after a series of incidents that tarnished its reputation in recent years. Facebook/Meta secured the second spot in the most distrusted brand list, while Qantas dropped one place to third.
For Woolworths, this loss of trust comes at the end of a tumultuous year. The company reported a 4.6 percent increase in net profit to $1.62 billion in the 2022-2023 financial year, which was higher than its previous performance. However, Woolworths faced allegations of price-gouging and was subject to investigations by politicians and the media. The controversy surrounding the company escalated when it decided not to stock Australia Day products, leading to calls for a boycott from the Opposition.
In addition to these challenges, Woolworths experienced internal struggles when CEO Brad Banducci announced his resignation in February 2024. Banducci’s departure came just days after he abruptly walked out of an interview with the Australian Broadcasting Corporation when pressed with questions about price-gouging allegations.
Currently, the supermarket sector is under investigation by multiple entities, including a probe led by the Greens Party and another by the consumer watchdog. These investigations will shed further light on the practices within the industry and may have implications for consumer trust moving forward.
The shift in rankings for Australia’s most trusted brands reflects a growing demand for transparency, ethical practices, and community involvement from companies. As consumers become increasingly aware of corporate behaviors, it is crucial for brands to prioritize trust-building efforts. Bunnings’ success in this regard serves as an example for other companies looking to regain or maintain their position as a trusted brand in the eyes of Australian consumers.
