Woolworths and Coles have recorded the highest level of distrust in Roy Morgan’s consumer sentiment rankings.
Woolies has replaced Optus as the most distrusted brand in Australia, while Coles has followed closely, recording the second-highest level of distrust on record.
“Distrust has a far more potent impact on consumer behaviour than trust,” said Roy Morgan CEO Michele Levine.
“While trust creates loyalty, distrust can drive customers into the welcoming arms of more trusted brands. The reputational fall of Woolworths and Coles is a powerful reminder of the fragility of trust in today’s environment.”
During the COVID-19 pandemic, Woolworths and Coles earned record levels of trust. Their CEOs became the faces of reassurance, with high-profile media appearances and pandemic initiatives that resonated deeply with Australians, said Roy Morgan.
However, as the cost-of-living crisis gripped the nation, public sentiment shifted dramatically. Allegations of price hikes and profit-driven strategies emerged as critical drivers of distrust for both brands.
“The pandemic placed the major supermarkets at the centre of Australian lives,” Levine continued.
“But the goodwill they built during that period has been reversed by perceptions of too profit-motivated and unaffordable pricing.”
In 2022 and 2023, Woolworths and Coles were celebrated as Australia’s two most trusted brands. Yet by October 2024, Woolworths had fallen 239 places to become the most distrusted brand, with Coles following closely, dropping 237 places. This fall underscores how volatile consumer sentiment can be and highlights distrust’s critical role in eroding reputational strength.
“Distrust is a virus for brands,” said Ms. 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.”
The stakes are high for both supermarket brands. As the nation’s largest retailers, their reputational standing not only affects their own businesses but also has broader implications for consumer confidence and market stability. Levine emphasised, “Trust is more than a metric; it’s the foundation of loyalty. Without it, even the most established brands are vulnerable to the power of consumer backlash, becoming fragile brands.”
Roy Morgan research reveals that public expectations for ethical conduct, transparency, and prioritisation of community welfare have intensified since the pandemic.
“The data paints a clear picture: Australians are holding brands to higher standards, and those that fail to meet these expectations face reputational consequences,” said Ms. Levine.
