Woolworths and Coles have become Australia’s most distrusted brands, according to the latest Roy Morgan research. Woolworths now holds the unwanted title of being the most distrusted brand in the country, dethroning Optus, with Coles following as the second-most distrusted.
Roy Morgan CEO Michele Levine said of the research, “Distrust has a far more potent impact on consumer behaviour than trust. While trust creates loyalty, distrust can drive customers into the welcoming arms of more trusted brands.”
During the COVID-19 pandemic, Woolworths and Coles were lauded for their leadership, earning record levels of consumer trust. Their CEOs became household names, offering calm and reassurance through initiatives that resonated deeply with Australians, such as senior shopping hours and community support programs. However, as the cost-of-living crisis tightened its grip on Australian households, the narrative shifted.
Public perceptions of price hikes and profit-driven motives have emerged as significant drivers of distrust for both supermarket giants. Levine added, “The pandemic placed the major supermarkets at the centre of Australian lives. But the goodwill they built during that period has been reversed by perceptions of too profit-motivated and unaffordable pricing.”
Trust: A fragile foundation
Just two years ago, Woolworths and Coles were celebrated as Australia’s two most trusted brands. However, by October 2024, Woolworths had plummeted 239 places in Roy Morgan’s rankings to become the most distrusted, while Coles fell 237 places to claim the second spot. This dramatic decline illustrates the volatility of consumer sentiment and the critical role distrust plays in eroding a brand’s reputation.
“Distrust is a virus for brands,” said Levine. “It spreads quickly, and reversing it is a complex and multi-year challenge. For the big supermarkets, this means rethinking how they engage with and persuade Australians, particularly in times of economic pressure.”
As the nation’s largest retailers, Woolworths and Coles wield significant influence over the economy. Their reputational woes not only threaten their bottom lines but also have broader implications for consumer confidence and market stability.
“Trust is more than a metric; it’s the foundation of loyalty,” Levine emphasised. “Without it, even the most established brands are vulnerable to the power of consumer backlash, becoming fragile brands.”
Consumer expectations on the rise
The pandemic appears to have heightened public expectations of ethical conduct, transparency, and community welfare from brands. According to the research, Australians are now holding companies to higher standards, with those failing to meet these expectations facing significant reputational consequences.
“The data paints a clear picture: Australians are holding brands to higher standards, and those that fail to meet these expectations face reputational consequences,” Levine said.