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"Misconceived": Coles and Woolies fight allegations of price gouging

Coles and Woolworths are set to fight the allegations that they have been inflating prices, as they begin their cases against the Australian Competition and Consumer Commission (ACCC). The lawyers for both supermarket giants appeared in the Federal Court on Wednesday after the ACCC claims the companies violated consumer law by intentionally misleading shoppers. The ACCC claim both Coles and Woolworths inflated the prices on hundred of items before placing them on sale with their "Down Down" and "Prices Dropped" campaigns. The products - including dairy, pet food and personal care - sold for less than the inflated prices, but still more than the regular price that applied before the price spike. Cameron Moore SC, representing Woolworths, told the court the supermarket had not initiated the temporary spikes in prices and would be fighting the ACCC's allegations. "The suggestion is that Woolworths initiated temporary price spikes and that's not correct factually," Moore said. "We say factually, the ACCC's case is misconceived." Both Coles and Woolworths said their increase in prices came at the demand of suppliers, who pushed for the increase due to their rising costs. John Sheahan KC, representing Coles, said the case was not as simple as alleged by the ACCC and any outcome could have significant implications for the whole industry. Coles and Woolworths have until November 29th to file a written response to the ACCC's allegations, before both parties return to the Federal Court in December for another case management hearing. Image credits: Shutterstock

Legal

Coles and Woolies shoppers could claim thousands over alleged deceptive pricing

Coles and Woolworths shoppers could claim up to $5,000 if the supermarket giants are found out for deceiving customers with dodgy pricing tactics, according to a leading lawyer. Carter Capner Law is one of two firms investigating whether a class action suit on behalf of shoppers is viable in conjunction with the ACCC's legal action against the two chains. Both Coles and Woolworths have bee accused of violating Australian consumer law by the consumer watchdog after allegedly intentionally misleading customers by driving up prices and then putting those items on sale for their original prices under the "Prices Dropped" and "Down Down" campaigns. “Early estimates suggest that households could claim between $2,000 and $5,000, depending on the amount spent and the impact of the deceptive pricing,” law director Peter Carter said, who began advocating for people after he received an "avalanche of calls from outraged customers". While Carter said the firm initially had no plans to commence a class action, he admitted that after speaking about it to the media, the company were inundated with Coles and Woolworths customers "demanding action and compensation". He believes Australians already doing it tough through the cost of living crisis felt "betrayed" by the supermarkets, while Flinders University research fellow in law Dr Joel Lisk said that the class action is "a positive" for shoppers. "The ACCC proceedings aren't about getting refunds for customers," he told Yahoo. "But if they are successful it would mean customers have, in theory, been misled and deceived and could be entitled to damages." When it comes to damages, it's something Dr Lisk said "starts to add up" for customers, although it's "hard to say" if financial penalties to businesses found guilty of wrongdoing would impact misleading and deceptive conduct in the future. "If [fines are] seen as just the cost of doing business it doesn't really dissuade businesses from engaging in misleading and deceptive conduct," he said. "Seeking damages from business for the losses that individuals like us have incurred is one way of doing that. But of course, we're talking probably about dollars and cents in transactions when businesses like Coles and Woolworths deal in the billions." Image credits: Shutterstock

Legal

"Can you sleep at night?" Frustrated shopper confronts Woolies CEO over price gouging

A frustrated Woolworths shopper has called out the supermarket's CEO in store to demand answers about Woolies' record-breaking profits during the cost of living crisis. Chief executive Amanda Bardwell was walking around a Woolworths store in Wollongong when the heated exchange took place, with the whole thing captured on camera. The customer fired off hard-hitting questions to the CEO and other senior staff members, asking, "What do you have to say to the fact that your company is profiting off price gouging during the cost of living crisis?" Ms Bardwell, looking visibly shocked by the confrontation, replied, "Thank you for reaching out to us, we're doing everything we can to recognise that customers are doing it tough to make sure that they're able to get great prices." The woman didn't accept her answer, firing back, "I really don't believe that. Millions of people in Australia right now have to skip meals in order to survive, while you continue to make big bucks and working class people suffer. Can you sleep at night knowing that?" Ms Bardwell replied, "Our team are doing everything that we can to support our customers. We understand that it is an incredibly difficult time right now." A staff member then intervened, adding, "We have lowered prices and you see that right throughout our store… that's great value for our customers." Ms Bardwell thanked the customer for sharing her views and said Woolworths was doing "everything we can" to keep prices low for customers, before another staff member chimed in to say "It's actually illegal to film people in NSW without permission, with the CEO walking away. Social media users were quick to praise the woman for confronting Miss Bardwell, while sharing their own stories of being stung by hefty supermarket prices. "I'm sick of paying nearly $300 a week on groceries. That's choosing the cheapest products. My fridge still looks half empty when I unpack," one said. "I'm sure Coles and Woolworth management don't have cost of living crisis as they are getting bigger and bigger bonus year after year," a second wrote. Others took aim at one particular comment in the video, pointing out, "'It’s illegal to film in NSW without permission', yet Woolworths has how many cameras in every store? Cameras in people’s faces in self serve on every screen. Did they get our permission?" Another added, "If only their empathy was as big as their prices." Image credits: TikTok

Legal

ACCC launches legal action against Coles and Woolworths

The Australian Competition and Consumer Commission (ACCC) has launched legal action against supermarket giants Woolworths and Coles. The ACCC alleges that they breached consumer law by misleading customers through fake discount pricing on hundreds of products. They also alleged that both companies had sold items at regular prices for up to six months, then increased the prices of those items by at least 15 per cent before placing them in the promotion. The ACCC alleges up to 266 products were involved in the fake discount pricing at Woolworths at different times over an estimated 20 month period, and 245 products for Coles over a 15 month period. “Following many years of marketing campaigns by Woolworths and Coles, Australian consumers have come to understand that the ‘Prices Dropped’ and ‘Down Down’ promotions relate to a sustained reduction in the regular prices of supermarket products,” ACCC chair Gina Cass-Gottlieb said. “However, in the case of these products we allege the new ‘Prices Dropped’ and ‘Down Down’ promotional prices were actually higher than, or the same as, the previous regular price.” Some of the Woolworths products reportedly included Tim Tams, Dolmio sauces, Doritos Salsa, Energizer batteries, Kellogg's cereals and more. For Coles, products reportedly included Arnott’s Shapes biscuits, Band-Aids and Cadbury chocolates amongst others. In a statement, Woolworths CEO Amanda Bardwell said they would carefully review the claims and engage with the ACCC on the matter. "Cost-of-living pressures remain a key issue for millions of Australians who shop with us every week,” she said. "Our customers are telling us they want us to work even harder to deliver meaningful value to them and it's important they can trust the value they see when shopping our stores. "Our Prices Dropped program was introduced to provide our customers with great everyday value on their favourite products. "We remain committed to offering many ways for customers to save at the checkout, including thousands of weekly specials, everyday low prices on household essentials, a great value own brand range and through our Everyday Rewards program." Coles said the allegations related to a period of significant cost inflation for the retailer. “Coles’ own costs were rising, which led to an increase in the retail price of many products,” it said. “Coles sought to strike an appropriate balance between managing the impact of cost price increases on retail prices and offering value to customers though the recommencement of promotional activity as soon as possible after the establishment of the new non-promotional prices.” CHOICE Director of Campaigns Rosie Thomas welcomed the ACCC's announcement and call for greater transparency in supermarket pricing. "We know … promotional labels at the major supermarkets often confuse shoppers and the frequent changes in prices make it difficult to tell whether there is a genuine discount or not," she said. The ACCC said it identified the conduct through consumer contacts and social media monitoring. "We're seeking a significant penalty," the ACCC chair said. "This is serious conduct that is of great concern to us, that affected many consumers with millions of products sold, subject to this practice." Image: ABC News

Legal

Old grocery receipt highlights extortionate increase at supermarkets

An old Woolworths receipt from 2021 has revealed the grim reality of increased grocery prices, and how inflation has crippled many in just a few short years. A social media user on X, formerly Twitter, shared her receipt from a Melbourne Woolworths as she highlighted how much more common household items cost today. She said it showed how Aussies were shelling out for costs that appear to have moved well past official inflation levels, which rose to 3.8 per cent by the end of June. “We all knew we’re being ripped off! Australians are now paying up to 200% more for basic grocery items than they were a few years ago!” she wrote. “Oh but inflations (sic) currently back at around 3.8% … yeah my ass it is!!” <blockquote class="twitter-tweet"> Found an old Woolworths receipt circa 2021. We all knew we re being ripped off! Australians are now paying up to 200% more for basic grocery items than they were a few years ago! Oh but inflations currently back at around 3.8% … yeh my ass it is!! Pink Lady Apply $2.90kg… <a href="https://t.co/9OPS6SnOqI">pic.twitter.com/9OPS6SnOqI</a> — Miss Madeleine (@MadsMelbourne) <a href="https://twitter.com/MadsMelbourne/status/1832282784431534448?ref_src=twsrc%5Etfw">September 7, 2024</a></blockquote> Her docket shows how everyday items like coffee grounds, potato chips and stain removers have skyrocketed in price. In the receipt items such as a 250g packet of Bega cheese is priced at $4.50 – it’s now $6 for the same item, discounted from $7.50 according to online pricing. Deli fresh Champagne leg ham sold for $2.50 for 100g according to the receipt, while current prices put that at $4.20. Ozkleen prewash power stain remover is now currently listed as $7 for a 500ml bottle, more than 200 per cent higher than the $2.75 it sold for three years ago. The woman also posted another smaller receipt from the same year, in which she bought grapes and a watermelon. In addition to sharing the image, she wrote, "Another one to add! No wonder Australia is having a cost of living crises! Woolworths Receipt circa 2021. Grapes were $3.50kg, now $14.16 = 304% increase. Watermelon was $1.50 now $6.38kg = 325% increase." Grocery prices have come under the spotlight amid the cost-of-living crisis, with the Australian Consumer and Competition Commission tasked with probing the sector. “We know grocery prices have become a major concern for the millions of Australians experiencing cost of living pressures,” ACCC chair Gina Cass-Gottlieb said in January. “When it comes to fresh produce, we understand that many farmers are concerned about weak correlation between the price they receive for their produce and the price consumers pay at the checkout.” Coles and Woolworths have defended the price rises as being pushed by supply chain struggles, while both companies posted profits of more than $1 billion in the last financial year. A spokesperson for Woolworths also released a statement saying "Ongoing economy-wide inflation means it costs more for many supermarket suppliers to manufacture their products than it did a few years ago. "We remain focussed on delivering lower prices where we can, with our average prices coming down in the last six months, and thousands of specials every week. "The price of fruit and vegetables can vary throughout the year due to weather, seasonality, supply and demand. For example, Haas avocados are currently not in season." Image credits: X / Shutterstock

Money & Banking

Woolies trial bold new "scan as you go" trolleys

Woolworths shoppers will be able to scan their groceries when they go into their trolleys in an Australian-first trial of the tech carts. The Scan and Go carts are being trialled at a Woolworths in Windsor in western Sydney, with customers now able to scan items as they add them to their cart, eliminating time at busy checkouts. The technology, which has long been used in supermarkets overseas, utilises the already existing EverydayRewards cards, which allows access to a touchscreen that clips onto the trolley. As you peruse the aisles, shoppers then scan their items on the touchscreen as they go into the trolley, with the screen adding up the total of your groceries. Customers still have to pay at the checkout, but the supermarket says as the smart carts roll out, customers could eventually swipe their cards and pay directly at their trolley, cutting out the need for any time in line for tills. "The technology is co-created with one of our international partners [and is] home-grown in Australia, [we've] really been able to make sure it meets the Australian consumers needs," Woolies Managing Director Faye Ihan said. The high-tech system is meant to save shoppers time and money while doing their weekly grocery shop. "I actually have only been in here for half an hour I'd normally be here for over an hour," one customer who tried the smart cart told <a href="https://www.9news.com.au/national/woolies-trials-new-scan-as-you-go-trolleys/4e7e5c2d-04e9-4997-8a0e-0bb4bba8948d" target="_blank" rel="noopener">9News</a>. The company says the rollout won't impact employment, as Woolworths employees will conduct random checks of people shopping to make sure people don't exploit the system to steal. If the trial is successful, Woolworths says it will one day expand the smart carts to all Australian stories. Image credits: 9News

Food & Wine

Australia's cheapest supermarket revealed

Australia's cheapest supermarket has been revealed, and here's how much you could actually save. Customer advocacy group Choice has released its first “basket of goods” report, which analyses supermarket prices across the country. As part of their research, they deployed 81 mystery shoppers to different regional and metropolitan supermarkets across the country, including Aldi, Woolworths, and Coles. The mystery shoppers recorded the prices for 14 common grocery items including apples, carrots, Weet-Bix, sliced white bread, flour, penne pasta, white sugar, tea bags, tinned diced tomatoes, a block of tasty cheese, full-cream dairy milk, frozen peas, minced beef and butter. They found that Aldi is Australia's cheapest supermarket saving customers around $17. “Aldi was the clear leader on value for money in our first supermarket basket survey for 2024, with our basket of 14 products costing just $51.51 – coming in at about 25 per cent cheaper than Coles or Woolworths,” the watchdog’s CEO, Ashley de Silva, said. "Coles was the most expensive at $69.33, while the basket at Woolworths came in at $68.58.” The research was funded by the federal government as part of their action on supermarket pricing. This comes after Prime Minister Anthony Albanese announced a review into the Food and Grocery Code of Conduct earlier this year, warning supermarkets to pass on any savings they make from suppliers to consumers. The code is currently voluntary, with calls for it to be made mandatory, which could result in huge financial penalties on supermarkets with annual revenues above $5bn that breach the agreement. The final review is reportedly expected later this week. Aldi has also issued a statement following the findings, saying it “reaffirms Aldi’s Price Promise” which ensures the supermarket “won’t be beaten on the cost of your weekly shop”. “The data reflected across this basket of goods is indicative of the savings across our entire range,” Jordan Lack, Managing Director at Aldi Australia, said. “We take our role as Australia’s most affordable supermarket seriously and every day, every element of our business is oriented around how we can continue to deliver on our ambition to provide high quality groceries at the lowest possible price.” Image: Shutterstock

Money & Banking

With all this bird flu around, how safe are eggs, chicken or milk?

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/enzo-palombo-249510">Enzo Palombo</a>, <a href="https://theconversation.com/institutions/swinburne-university-of-technology-767">Swinburne University of Technology</a> Recent outbreaks of bird flu – in <a href="https://www.cdc.gov/flu/avianflu/avian-flu-summary.htm">US dairy herds</a>, <a href="https://www.abc.net.au/news/rural/2024-06-04/third-victorian-poultry-farm-declares-outbreak-avian-influenza/103932694">poultry farms in Australia</a> and elsewhere, and <a href="https://theconversation.com/bird-flu-is-hitting-australian-poultry-farms-and-the-first-human-case-has-been-reported-in-victoria-heres-what-we-know-230691">isolated cases</a> <a href="https://www.statnews.com/2024/05/30/bird-flu-third-case-human-infection-caused-respiratory-symptoms/">in humans</a> – have raised the issue of food safety. So can the virus transfer from infected farm animals to contaminate milk, meat or eggs? How likely is this? And what do we need to think about to minimise our risk when shopping for or preparing food? <h2>How safe is milk?</h2> Bird flu (or avian influenza) is a bird disease caused by specific types of influenza virus. But the virus can also infect cows. <a href="https://www.cdc.gov/flu/avianflu/avian-flu-summary.htm">In the US</a>, for instance, to date more than 80 dairy herds in at least nine states have been infected with the H5N1 version of the virus. Investigations are <a href="https://www.aphis.usda.gov/livestock-poultry-disease/avian/avian-influenza/hpai-detections/livestock">under way</a> to confirm how this happened. But we do know infected birds can shed the virus in their saliva, nasal secretions and faeces. So bird flu can potentially contaminate animal-derived food products during processing and manufacturing. Indeed, fragments of bird flu genetic material (RNA) were found in <a href="https://theconversation.com/how-bird-flu-virus-fragments-get-into-milk-sold-in-stores-and-what-the-spread-of-h5n1-in-cows-means-for-the-dairy-industry-and-milk-drinkers-228689">cow’s milk</a> from the dairy herds associated with <a href="https://www.statnews.com/2024/05/30/bird-flu-third-case-human-infection-caused-respiratory-symptoms/">infected US farmers</a>. However, the spread of bird flu among cattle, and possibly to humans, is likely to have been caused through contact with <a href="https://www.agriculturedive.com/news/contaminated-milk-equipment-potential-source-of-bird-flu-spread-to-cattle/712555/">contaminated milking equipment</a>, not the milk itself. The test used to detect the virus in milk – which uses similar PCR technology to lab-based COVID tests – is also highly sensitive. This means it can detect very low levels of the bird flu RNA. But the test does not distinguish between live or inactivated virus, just that the RNA is present. So from this test alone, we cannot tell if the virus found in milk is infectious (and capable of infecting humans). Does that mean milk is safe to drink and won’t transmit bird flu? Yes and no. In Australia, where bird flu has not been reported in dairy cattle, the answer is yes. It is safe to drink milk and milk products made from Australian milk. In the US, the answer depends on whether the milk is <a href="https://www.sciencedirect.com/science/article/abs/pii/B978184569216250013X?via%3Dihub">pasteurised</a>. We know pasteurisation is a common and reliable method of destroying concerning microbes, including influenza virus. Like most viruses, influenza virus (including bird flu virus) is inactivated by heat. Although there is little direct research on whether pasteurisation inactivates H5N1 in milk, we can extrapolate from what we know about heat inactivation of H5N1 in <a href="https://www.sciencedirect.com/science/article/pii/S0362028X22060732?via%3Dihub">chicken</a> and <a href="https://www.mdpi.com/2036-7481/13/4/60">eggs</a>. So we can be confident there is no risk of bird flu transmission via pasteurised milk or milk products. However, it’s another matter for unpasteurised or “raw” US milk or milk products. A recent <a href="https://www.nejm.org/doi/full/10.1056/NEJMc2405495">study</a> showed mice fed raw milk contaminated with bird flu developed signs of illness. So to be on the safe side, it would be advisable to avoid raw milk products. <h2>How about chicken?</h2> Bird flu has caused sporadic outbreaks in wild birds and domestic poultry worldwide, including <a href="https://theconversation.com/bird-flu-is-hitting-australian-poultry-farms-and-the-first-human-case-has-been-reported-in-victoria-heres-what-we-know-230691">in Australia</a>. In recent weeks, there have been <a href="https://www.abc.net.au/news/rural/2024-06-04/third-victorian-poultry-farm-declares-outbreak-avian-influenza/103932694">three reported outbreaks</a> in <a href="https://agriculture.vic.gov.au/biosecurity/animal-diseases/poultry-diseases/avian-influenza-bird-flu#h2-0">Victorian poultry farms</a> (two with H7N3 bird flu, one with H7N9). There has been <a href="https://www.abc.net.au/news/rural/2024-05-23/bird-flu-detected-western-australia-chicken-farm/103880002">one</a> reported outbreak in <a href="https://www.agric.wa.gov.au/livestock-biosecurity/avian-influenza">Western Australia</a> (H9N2). The strains of bird flu identified in the Victorian and Western Australia outbreaks can cause human infection, although these <a href="https://agriculture.vic.gov.au/biosecurity/animal-diseases/poultry-diseases/avian-influenza-bird-flu#h2-8">are rare</a> and typically result from close contact with infected live birds or <a href="https://www.who.int/emergencies/situations/avian-influenza-a-(h7n9)-virus-outbreak">contaminated environments</a>. Therefore, the chance of bird flu transmission in chicken meat is remote. Nonetheless, it is timely to remind people to handle chicken meat with caution as many dangerous pathogens, such as Salmonella and Campylobacter, can be found on chicken carcasses. Always handle chicken meat carefully when shopping, transporting it home and storing it in the kitchen. For instance, make sure no meat juices cross-contaminate other items, consider using a cool bag when transporting meat, and refrigerate or freeze the meat within two hours. <a href="https://theconversation.com/no-you-shouldnt-wash-raw-chicken-before-cooking-it-so-why-do-people-still-do-it-192723">Avoid washing your chicken</a> before cooking to prevent the spread of disease-causing microbes around the kitchen. Finally, cook chicken thoroughly as viruses (including bird flu) <a href="https://www.sciencedirect.com/science/article/pii/S0362028X22060732?via%3Dihub">cannot survive</a> cooking temperatures. <h2>Are eggs safe?</h2> The recent Australian outbreaks have occurred in egg-laying or mixed poultry flocks, so concerns have been raised about bird flu transmission via contaminated chicken eggs. Can flu viruses contaminate chicken eggs and potentially spread bird flu? It appears so. A <a href="https://www.sciencedirect.com/science/article/pii/S0196655306011862?via%3Dihub">report</a> from 2007 said it was feasible for influenza viruses to enter through the eggshell. This is because influenza virus particles are smaller (100 nanometres) than the pores in eggshells (at least 200 nm). So viruses could enter eggs and be protected from cleaning procedures designed to remove microbes from the egg surface. Therefore, like the advice about milk and meat, cooking eggs is best. The <a href="https://www.fda.gov/food/egg-guidance-regulation-and-other-information/questions-and-answers-regarding-safety-eggs-during-highly-pathogenic-avian-influenza-outbreaks">US Food and Drug Administration</a> recommends cooking poultry, eggs and other animal products to the proper temperature and preventing cross-contamination between raw and cooked food. <h2>In a nutshell</h2> If you consume pasteurised milk products and thoroughly cook your chicken and eggs, there is nothing to worry about as bird flu is inactivated by heat. The real fear is that the virus will evolve into highly pathogenic versions that can be transmitted from <a href="https://theconversation.com/bird-flu-is-hitting-australian-poultry-farms-and-the-first-human-case-has-been-reported-in-victoria-heres-what-we-know-230691">human to human</a>. That scenario is much more frightening than any potential spread though food.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/231280/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/enzo-palombo-249510">Enzo Palombo</a>, Professor of Microbiology, <a href="https://theconversation.com/institutions/swinburne-university-of-technology-767">Swinburne University of Technology</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/with-all-this-bird-flu-around-how-safe-are-eggs-chicken-or-milk-231280">original article</a>. </div>

Food & Wine

The hen-some winners of Australia's next top chicken awards

The winners of Australia's Next Top Chicken competition have been crowned, with the winners ranging from feathered and fluffy, to just utterly fabulous. The annual competition, run by <a href="https://www.thegoodlifebackyard.com.au/australias-next-top-chicken-competition/" target="_blank" rel="noopener">Good Life Backyard</a>, gives farm enthusiasts a chance to show off their feathered friends, with the competition receiving hundreds of entrants this year. Tens of thousands of votes were cast by the public, ultimately crowning a Buff Laced Polish Frizzle, named Little Bird, the top chook for 2024. The top award is given to a chicken that embodies all the qualities of a standout star, and will be featured in the coveted spot on the 2025 Top Chicken calendar. The winner of Australia's next top rooster is Big Boy McFuzzle, who rules the roost with presence and charisma. Awards were also handed out to the funniest picture, as well as two random prize winners. Each year competition organisers draw random entries "ensuring everyone has a shot at winning". "Every chicken deserves a chance," organisers said. "This year's event was such a wonderful display of all breeds, abilities, disabilities and dedication to raising healthy, happy chickens." Image credits: Good Life Backyard <p style="box-sizing: border-box; margin: 0px 0px 16px; padding: 0px; border: 0px; font-stretch: inherit; font-size: 18px; line-height: 24px; font-family: proxima-nova, 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size-adjust: inherit; font-kerning: inherit; font-variant-alternates: inherit; font-variant-ligatures: inherit; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-variant-position: inherit; font-feature-settings: inherit; font-optical-sizing: inherit; font-variation-settings: inherit; vertical-align: baseline; color: #333333; caret-color: #333333;">

Family & Pets

Woolies faces up to $10b fine after pleading guilty to 1000 charges

In what seems like a cascade of misfortune for Woolworths, the retail giant has found itself embroiled in yet another controversy. A week fraught with bad press took a turn for the worse when outgoing CEO Brad Banducci <a href="https://www.oversixty.com.au/finance/legal/last-chance-mr-banducci-woolies-ceo-threatened-with-jail-time" target="_blank" rel="noopener">faced the threat of jail time</a> for his refusal to address questions in a Senate inquiry probing supermarket price gouging. Now, the company is grappling with the repercussions of admitting to underpaying over a thousand former Victorian employees for their long service leave entitlements. The admission, made in a Melbourne court, revealed that Woolworths fell short in compensating at least 1,235 former workers, amounting to a staggering $1.24 million in underpayments spanning from November 2018 to January 2023. While some employees were owed only modest sums, others were deprived of significant entitlements, with figures reaching up to $12,000 in the most severe cases. The Melbourne Magistrates' Court learned that Woolworths, alongside its related company Woolstar, breached Victoria's Long Service Leave Act on a startling 1,227 occasions. The revelation came to light during an internal audit of the company's IT systems, prompting Woolworths to self-report the discrepancies to Victoria's Wage Inspectorate. Woolworths' barrister, Saul Holt KC, highlighted the company's commitment to rectifying the situation, after discovering the discrepancies during an audit of its IT systems and self-reporting it to Victoria's Wage Inspectorate. "That's just the right thing to do," he said. However, the gravity of the breaches places Woolworths at risk of facing a potentially astronomical fine, with a theoretical maximum exceeding $10.25 billion. While such a penalty could spell financial catastrophe for many, including a corporate behemoth like Woolworths, legal experts suggest that a more realistic figure would be capped at approximately $480,000, in line with typical penalties in Victorian magistrates courts. The magistrate presiding over the case, Nahrain Warda, has deferred her decision until Wednesday, April 24, leaving Woolworths in a state of uncertainty. In addition to the impending financial penalty, Kathleen Crennan, representing the Wage Inspectorate of Victoria, advocated for Woolworths to be convicted, denouncing the underpayments as inexcusable. "There's really no excuse for this to have happened in the first place," she said. In the face of mounting legal challenges and public scrutiny, Woolworths' reputation as an employer is under scrutiny. Despite assertions of being an "exemplary employer", founded on principles dating back to 1924, the company's track record is marred by repeated instances of underpayment scandals. As Woolworths awaits the magistrate's verdict and braces for the fallout from its legal battles, the spectre of underpayment casts a long shadow over the company's corporate governance and raises broader questions about accountability within the retail industry. Images: Woolworths

Legal

"Last chance, Mr Banducci": Woolies CEO threatened with jail time

Outgoing Woolworths CEO Brad Banducci has been threatened with jail time for refusing to answer questions about price gouging at a fiery Senate enquiry. The parliamentary probe into supermarket prices has seen Banducci be grilled by senators about how the supermarket raked in record-breaking profits during the ongoing cost of living crisis. During the enquiry on Tuesday, Banducci was repeatedly warned by committee chair and Greens senator Nick McKim about giving evasive answers when asked about his company's return on equity. Banducci repeatedly told the committee that return on equity was not his focus, and Woolworths is instead more interested in return on investment, refusing the question and prompting a 15-minute adjournment. When the enquiry resumed, a similar exchange occurred, leading to another warning for the Woolworths chief executive. "Last chance, Mr Banducci," McKim said. "Do you accept that return on equity is an accepted measure of the financial profitability of a company?" When Banducci replied that "we measure return on investment", the committee was suspended. Its return immediately saw another round of the same questions and answers, with McKim warning Banducci about the consequences of not answering questions clearly. "It is open to the Senate to hold you in contempt, and that carries potential sanctions including up to six months imprisonment for you," he said after saying the Woolworths boss could simply say he didn't know the answer and take the question on notice. "That's why this is a critical matter so I'd just ask you to address your mind with absolute clarity, please, to the question I am asking." "I put it to you the reason you don't want to focus on return on equity is because you don't like the story that it's telling, which is that you are basically profiteering and making off with massive profits at the expense of farmers at the expense of your workers and at the expense of Australian shoppers who you are price gouging," Greens senator McKim said. The enquiry is still ongoing, with Coles counterpart Leah Weckert set to address the same Senate committee later on Tuesday as the government continues to probe allegations of price gouging. Image Credits: ABC - Four Corners

Legal

Pauline Hanson slams Woolies' controversial Anzac Day decision

Pauline Hanson has slammed Woolworths and their decision to not stock commemorative Anzac biscuit tins ahead of this year's Anzac Day. The supermarket giant has chosen not to stock the limited edition tins this year, after making the decision to stock Anzac biscuits all year round, and donating to the RSL in other various ways. In previous years, Woolies have sold the tins that feature designs commemorating different wars and conflicts and are collectable items, with a portion of the profits supporting the RSL to aid veterans and their families. The decision not to stock the tins has outraged Senator Hanson, who has decided to continue her boycott of Woolies, which began when the supermarket didn't stock Australia Day merchandise in January. “I haven’t shopped at Woolworths ever since they announced they wouldn’t be supporting Australia Day,” Senator Hanson wrote online. “Now that I have learned Woolworths has also refused to stock the RSL’s special Anzac biscuit tins, It reinforces my original decision. “If Woolworths isn’t interested in celebrating Australia and doing everything it can to support our veterans through organisations like the RSL, then I’m proud to continue to boycott Woolworths and I hope others will join me in taking their business elsewhere.” Some veterans have also shared their upset in hearing the news, as World War II veteran Jack Bartlett said he was “horrified” to hear of Woolies decision. “I collect those tins and value them greatly because of my association. I’m very, very sorry to hear that Woolworths won’t do it (sell them),” Mr Bartlett told 2GB’s Ben Fordham. “It’s such a small thing for such a big shopping conglomerate to do. I don’t think it’s very, very much to ask them to continue what they’ve done for some time." Woolworths have since responded to Senator Hanson's accusations, with a spokesperson telling <a href="https://www.news.com.au/finance/business/retail/woolworths-responds-to-pauline-hansons-accusations-over-stocking-of-anzac-day-commemorative-tins/news-story/92d04438600a19f61837026198c81b4e" target="_blank" rel="noopener">news.com.au</a> that the supermarket giant was selling multiple items for Anzac appeals and has raised almost $13 million for the cause over the past decade. Woolies confirmed that while it will not be stocking the limited-edition tins this year, they will be selling Anzac Appeal badges and supporting veterans and the RSL. “We are the only supermarket to be selling the badges,” Woolworths said in a statement. “We sell Bakers Finest Anzac biscuits in our stores all year round, this product is endorsed by the RSL and generates revenue for the RSL to support veterans and their families. “We’ve been proud partners of the RSL for the past 10 years, supporting the ANZAC Appeal in April and the Poppy Appeal in November. Almost $13 million has been raised at Woolworths in the past 10 years for those appeals.” "This support continues in 2024, with Woolworths once again stocking ANZAC and Poppy Appeal badges for purchase, providing direct and crucial support to the veteran community nationwide." Image credits: Getty Images / Shutterstock

Legal

Bunnings has toppled Woolworths as Australia’s most ‘trusted’ brand – what makes us trust a brand in the first place?

<a href="https://theconversation.com/profiles/louise-grimmer-212082">Louise Grimmer</a>, <a href="https://theconversation.com/institutions/university-of-tasmania-888">University of Tasmania</a> Think of some of the world’s biggest brands: Nike, McDonald’s, Coca-Cola, Apple. With what do you associate them? Are they positive associations? Now consider, do you trust them? Brand trust is a measure of how customers feel about a brand in terms of how well the brand delivers on its promises. Trust is an important measure for any organisation, large or small. Whether or not customers trust a brand can be the difference between choosing that brand’s products or services over another. In Australia, Woolworths <a href="https://www.roymorgan.com/findings/9472-risk-monitor-quartely-update-december-2023">held the title</a> of our most trusted brand for three and a half years. But recent cost-of-living pressures have put supermarkets in the spotlight for all the wrong reasons. Roy Morgan Research’s <a href="https://www.roymorgan.com/findings/9472-risk-monitor-quartely-update-december-2023">most recent trust rankings</a> show Woolworths has slipped to number two, handing its crown to hardware behemoth Bunnings. It’s clear that trust is fragile and can be quickly squandered when brands lose touch with those they serve. So what makes us trust a brand in the first place? And why do we trust some more than others? <h2>What makes us trust a brand?</h2> According to customer experience management firm Qualtrics, <a href="https://www.qualtrics.com/au/experience-management/brand/brand-trust/">brand trust</a> is <blockquote> the confidence that customers have in a brand’s ability to deliver on what it promises. As a brand consistently meets the expectations it has set in the minds of customers, trust in that brand grows. </blockquote> There are many ways to go about measuring brand trust. A typical first step is to ask lots of people what they think, collating their general opinions on product quality and the brand’s customer service experience. This can be strengthened with more quantifiable elements, including: <ul> <li>online ratings and reviews</li> <li>social media “sentiment” (positive, negative or neutral)</li> <li>corporate social responsibility activities</li> <li>philanthropic efforts</li> <li>customer data security and privacy.</li> </ul> Some surveys go even deeper, asking respondents to consider a brand’s vision and mission, its approaches to sustainability and worker standards, and how honest its advertising appears. <h2>Is this a real and useful metric?</h2> The qualitative methodology used by <a href="https://www.roymorgan.com/findings/9472-risk-monitor-quartely-update-december-2023">Roy Morgan</a> to determine what Australian consumers think about 1,000 brands has been administered over two decades, so the data can be reliably compared across time. On measures of both trust and distrust, it asks respondents which brands they trust and why. This approach is useful because it tells us which elements factor into brand trust judgements. <a href="https://roymorgan-cms-prod.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2024/03/07035120/9472-Risk-Monitor-Quartely-Update-December-2023-1-1.pdf">Customer responses</a> about the survey’s most recent winner, Bunnings, show that customer service, product range, value-for-money pricing and generous returns policies are the key drivers of strong trust in its brand. Here are some examples: <blockquote> Great customer service. Love their welcoming staff. Whether it’s nuts and bolts or a new toilet seat, they have it all, value for money. Great products and price and have a no quibble refund policy. Great stock range, help is there if you need it and it is my go-to for my gardening and tool needs. Really convenient trading hours, and their return policy is good. </blockquote> In addition to trust, there are three other metrics commonly used to assess brand performance: <ul> <li> brand equity – the commercial or social value of consumer perceptions of a brand </li> <li> brand loyalty – consumer willingness to consistently choose one brand over others regardless of price or competitor’s efforts </li> <li> brand affinity – the emotional connection and common values between a brand and its customers. </li> </ul> However, trust is becoming a disproportionately important metric as consumers demand that companies provide <a href="https://www.forbes.com/sites/bernhardschroeder/2020/01/16/from-the-traditional-to-the-outrageous-four-brands-that-use-honest-transparency-to-build-loyal-customers-with-non-traditional-marketing-and-branding/?sh=6689f81320a1">increased transparency</a> and exhibit greater care for their customers, not just their shareholders. <h2>Why do Australians trust retailers so much?</h2> Of Australia’s top ten most trusted brands, seven are retailers – Bunnings, Woolworths, Aldi, Coles, Kmart, Myer and Big W. <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/582082/original/file-20240314-28-h0xdf4.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/582082/original/file-20240314-28-h0xdf4.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/582082/original/file-20240314-28-h0xdf4.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=279&fit=crop&dpr=1 600w, https://images.theconversation.com/files/582082/original/file-20240314-28-h0xdf4.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=279&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/582082/original/file-20240314-28-h0xdf4.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=279&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/582082/original/file-20240314-28-h0xdf4.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=350&fit=crop&dpr=1 754w, https://images.theconversation.com/files/582082/original/file-20240314-28-h0xdf4.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=350&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/582082/original/file-20240314-28-h0xdf4.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=350&fit=crop&dpr=3 2262w" alt="table shows that Bunnings is now Australia's most trusted brand, and Optus the least trusted brand." /></a><figcaption>The latest changes to Australia’s most trusted and most distrusted brand rankings. <a class="source" href="https://www.roymorgan.com/findings/9472-risk-monitor-quartely-update-december-2023">Roy Morgan Single Source (Australia)</a></figcaption></figure> This <a href="https://www.fastcompany.com/90901331/america-most-trusted-brands-companies-report-2023-morning-consult">stands in contrast</a> with the United States, where the most trusted brands are predominantly from the healthcare sector. So why do retail brands dominate our trust rankings? They certainly aren’t small local businesses. Our retail sector is <a href="https://www.afr.com/companies/retail/in-the-shopping-trolley-war-the-supermarkets-have-to-give-20240122-p5ez4k">highly concentrated</a>, dominated by a few giant retail brands. We have only two major department stores (David Jones and Myer), three major discount department stores (Big W, Target and Kmart) and a <a href="https://www.abc.net.au/news/2024-02-23/a-history-of-the-duopoly-coles-woolworths/103494070">supermarket “duopoly”</a> (Coles and Woolworths). It’s most likely then that these brands have been enjoying leftover goodwill from the pandemic. As Australia closed down to tackle COVID-19, the retail sector, and in particular the grocery sector, was credited with enabling customers to <a href="https://www.smh.com.au/business/companies/inside-story-how-woolworths-and-coles-joined-forces-to-avert-covid-19-disaster-20200611-p551lk.html">safely access</a> food and household goods. Compared with many other countries, we did not see a predominance of empty shelves across Australia. Retailers in this country stepped up – implementing or improving their online shopping capabilities and ensuring physical stores followed health guidelines and protocols. Now, with the pandemic behind us and in an environment of high inflation, the <a href="https://www.abc.net.au/news/2024-02-20/woolworths-coles-supermarket-tactics-grocery-four-corners/103405054">big two supermarkets</a> face <a href="https://www.theguardian.com/australia-news/2024/feb/20/do-coles-woolworths-specials-actually-offer-savings-choice-survey-supermarket-price-gouging-inquiry">growing distrust</a> and a <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Supermarket_Prices/SupermarketPrices">public inquiry</a>. <h2>Lessons from the losers</h2> After <a href="https://www.theguardian.com/business/2023/nov/20/optus-scandals-network-outage-cyberattack-ceo-resignation-kelly-bayer-rosmarin">two high profile disasters</a>, Optus finds itself the most distrusted brand in Australia. Its companions in the “most distrusted” group include social media brands Meta (Facebook), TikTok and X. Qantas, Medibank Private, Newscorp, Nestle and Amazon also made the top 10. The main reason consumers distrust brands is for a perceived failure to live up to their promises and responsibilities. For example, <a href="https://www.washingtonpost.com/technology/2023/09/18/amazon-working-conditions-safety-osha-doj/">worker conditions at multinational firm Amazon</a> are seen by some consumers as a reflection of questionable business practices. Other brands may have earned a reputation for failing to deliver the basics, like when chronic <a href="https://www.afr.com/companies/transport/compensating-travellers-for-cancelled-flights-long-overdue-20240212-p5f45c">flight delays and cancellations</a> plagued many Qantas customers. <h2>Lessons from the winners</h2> On the flip side, consumers have rewarded budget-friendly retailers with increased trust in the most recent rankings. Aldi, Kmart and Bunnings have improved their standing as trusted brands, no doubt in part because they have helped many Australian consumers deal with tight household budgets. As discretionary consumer spending continues to tighten, we may see a more permanent consumer shopping <a href="https://www.theaustralian.com.au/business/retail/rise-of-the-value-shopper-as-budgets-are-crunched-a-threat-and-opportunity-for-retailers/news-story/9b7a355cfb3866ec60d2ee42b7cbd567">shift towards value for money</a> brands and discounters. Trust is a fragile thing to maintain once earned. As we move through 2024, Australian companies must pay close attention to their most important asset – strong relationships with those they serve.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/225578/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/louise-grimmer-212082">Louise Grimmer</a>, Senior Lecturer in Retail Marketing, <a href="https://theconversation.com/institutions/university-of-tasmania-888">University of Tasmania</a> This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/bunnings-has-toppled-woolworths-as-australias-most-trusted-brand-what-makes-us-trust-a-brand-in-the-first-place-225578">original article</a>.

Money & Banking

The secret sauce of Coles’ and Woolworths’ profits: high-tech surveillance and control

<a href="https://theconversation.com/profiles/lauren-kate-kelly-1262424">Lauren Kate Kelly</a>, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a> Coles and Woolworths, the supermarket chains that together control <a href="https://www.abc.net.au/news/2024-02-20/woolworths-coles-supermarket-tactics-grocery-four-corners/103405054">almost two-thirds</a> of the Australian grocery market, are facing unprecedented scrutiny. One recent inquiry, commissioned by the Australian Council of Trade Unions and led by former Australian Consumer and Competition Commission chair Allan Fels, found the pair engaged in unfair pricing practices; an ongoing <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Supermarket_Prices/SupermarketPrices">Senate inquiry into food prices</a> is looking at how these practices are linked to inflation; and the ACCC has just begun <a href="https://www.accc.gov.au/inquiries-and-consultations/supermarkets-inquiry-2024-25">a government-directed inquiry</a> into potentially anti-competitive behaviour in Australia’s supermarkets. Earlier this week, the two companies also came under the gaze of the <a href="https://www.abc.net.au/news/2024-02-19/super-power-the-cost-of-living-with-coles-and-woolworths/103486508">ABC current affairs program Four Corners</a>. Their respective chief executives each gave somewhat prickly interviews, and Woolworths chief Brad Banducci <a href="https://www.abc.net.au/news/2024-02-21/woolworths-ceo-brad-banducci-retirement-four-corners/103493418">announced his retirement</a> two days after the program aired. A focus on the power of the supermarket duopoly is long overdue. However, one aspect of how Coles and Woolworths exercise their power has received relatively little attention: a growing high-tech infrastructure of surveillance and control that pervades retail stores, warehouses, delivery systems and beyond. <h2>Every customer a potential thief</h2> As the largest private-sector employers and providers of essential household goods, the supermarkets play an outsized role in public life. Indeed, they are such familiar places that technological developments there may fly under the radar of public attention. Coles and Woolworths are both implementing technologies that treat the supermarket as a “problem space” in which workers are controlled, customers are tracked and profits boosted. For example, in response to a purported spike in shoplifting, a raft of customer surveillance measures have been introduced that treat every customer as a potential thief. This includes <a href="https://www.news.com.au/lifestyle/food/eat/coles-introducing-new-technology-which-will-track-shoppers-every-move/news-story/86ea8d330f76df87f2235eeda4d1136e">ceiling cameras</a> which assign a digital ID to individuals and track them through the store, and <a href="https://www.thenewdaily.com.au/finance/consumer/2023/08/16/smart-gate-technology">“smart” exit gates</a> that remain closed until a purchase is made. Some customers have reported being “<a href="https://7news.com.au/lifestyle/coles-supermarketshoppers-dramatic-checkout-experience-goes-viral-i-was-trapped-c-12977760">trapped</a>” by the gate despite paying for their items, causing significant embarrassment. At least one Woolworths store has <a href="https://www.news.com.au/finance/business/woolies-in-wetherill-park-fitted-with-500-tiny-cameras-to-monitor-stock-levels/news-story/585de8c741ae9f520adcc4005f2a736a">installed 500 mini cameras</a> on product shelves. The cameras monitor real-time stock levels, and Woolworths says customers captured in photos will be silhouetted for privacy. A Woolworths spokesperson <a href="https://www.smh.com.au/national/nsw/up-to-70-cameras-watch-you-buy-groceries-what-happens-to-that-footage-20230819-p5dxtp.html">explained</a> the shelf cameras were part of “a number of initiatives, both covert and overt, to minimise instances of retail crime”. It is unclear whether the cameras are for inventory management, surveillance, or both. Workers themselves are being fitted with body-worn cameras and wearable alarms. Such measures may protect against customer aggression, which is a <a href="https://www.abc.net.au/news/2023-11-22/retail-union-staff-abuse-cost-of-living-christmas/103117014">serious problem facing workers</a>. Biometric data collected this way could also be used to discipline staff in what scholars Karen Levy and Solon Barocas refer to as “<a href="https://ijoc.org/index.php/ijoc/article/view/7041">refractive surveillance</a>” – a process whereby surveillance measures intended for one group can also impact another. <h2>Predicting crime</h2> At the same time as the supermarkets ramp up the amount of data they collect on staff and shoppers, they are also investing in data-driven “crime intelligence” software. Both supermarkets have <a href="https://www.smartcompany.com.au/industries/information-technology/grocery-chains-surveillance-tech-auror/">partnered with New Zealand start-up Auror</a>, which shares a name with the magic police from the Harry Potter books and claims it can predict crime before it happens. Coles also recently began a partnership with Palantir, a global data-driven surveillance company that takes its name from magical crystal balls in The Lord of the Rings. These heavy-handed measures seek to make self-service checkouts more secure without increasing staff numbers. This leads to something of a vicious cycle, as under-staffing, self-checkouts, and high prices are often <a href="https://www.aap.com.au/news/retail-workers-facing-increased-violence-and-abuse/">causes of customer aggression</a> to begin with. Many staff are similarly frustrated by <a href="https://www.theguardian.com/business/2023/jun/05/coles-woolworths-court-accused-of-underpaying-workers">historical wage theft by the supermarkets</a> that totals hundreds of millions of dollars. <h2>From community employment to gig work</h2> Both supermarkets have brought the gig economy squarely <a href="https://theconversation.com/coles-uber-eats-deal-brings-the-gig-economy-inside-the-traditional-workplace-204353">inside the traditional workplace</a>. Uber and Doordash drivers are now part of the infrastructure of home delivery, in an attempt to push last-mile delivery costs onto gig workers. The precarious working conditions of the gig economy are well known. Customers may not be aware, however, that Coles recently increased Uber Eats and Doordash prices by at least 10%, and will <a href="https://7news.com.au/lifestyle/shoppers-slam-coles-over-major-change-to-half-price-buys-that-will-affect-millions-c-12860556">no longer match in-store promotions</a>. Drivers have been instructed to dispose of the shopping receipt and should no longer place it in the customer’s bag at drop-off. In addition to higher prices, customers also pay service and delivery fees for the convenience of on-demand delivery. Despite the price increases to customers, drivers I have interviewed in my ongoing research report they are earning less and less through the apps, often well below Australia’s minimum wage. Viewed as a whole, Coles’ and Woolworths’ high-tech measures paint a picture of surveillance and control that exerts pressures on both customers and workers. While issues of market competition, price gouging, and power asymmetries with suppliers must be scrutinised, issues of worker and customer surveillance are the other side of the same coin – and they too must be reckoned with.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/224076/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/lauren-kate-kelly-1262424">Lauren Kate Kelly</a>, PhD Candidate, ARC Centre of Excellence for Automated Decision-Making and Society, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/the-secret-sauce-of-coles-and-woolworths-profits-high-tech-surveillance-and-control-224076">original article</a>.

Money & Banking

Woolies boss' multi-million dollar payout revealed

Chief executive Brad Banducci announced his <a href="https://www.oversixty.com.au/lifestyle/retirement-life/woolies-ceo-quits-after-disaster-interview" target="_blank" rel="noopener">early retirement </a>on Wednesday, following a series of PR disasters for the brand and just days after a <a href="https://www.oversixty.com.au/finance/money-banking/i-think-i-m-done-the-question-that-made-woolies-ceo-leave-interview" target="_blank" rel="noopener">trainwreck interview</a> with ABC Four Corners. Now, the staggering amount he will be paid-out for walking away from the top job has been revealed. According to a report published by The Australian, the supermarket boss will take home a share portfolio worth an estimated $24.4 million. This is in addition to the $6.5 million he would likely be paid-out from his salary. Banducci will step down from his position in September and he will be replaced by former WooliesX leader <a href="https://www.oversixty.com.au/finance/money-banking/new-woolies-ceo-s-huge-salary-revealed" target="_blank" rel="noopener">Amanda Bardwell</a>, who will take over as Chief Executive then. Woolworths Group has denied the suggestion that the resignation was related to the disaster Four Corners interview where Banducci tried to walk away in the middle of being questioned about price gouging. A senate inquiry is also currently investigating whether major supermarkets across the country have engaged in price gouging, as the cost-of-living continues to rise. Banducci has been involved in a series of public controversies before his retirement, including when he came under fire after the supermarket announced it would <a href="https://www.oversixty.com.au/finance/money-banking/woolworths-under-fire-for-dropping-australia-day-merch" target="_blank" rel="noopener">stop selling Australia Day merchandise </a>ahead of the national holiday in January. Image: Today

Money & Banking

New Woolies CEO's huge salary revealed

Woolworths have announced their new CEO, just hours after Brad Banducci shared the news of his <a href="https://www.oversixty.com.au/lifestyle/retirement-life/woolies-ceo-quits-after-disaster-interview" target="_blank" rel="noopener">retirement</a>. After almost nine years at the helm, Banducci is stepping down after a <a href="https://www.oversixty.com.au/finance/money-banking/i-think-i-m-done-the-question-that-made-woolies-ceo-leave-interview" target="_blank" rel="noopener">trainwreck interview</a> with ABC’s Four Corners, and while still facing backlash over the decision to not stock Australia Day merchandise. Now, his replacement has been announced, with Amanda Bardwell set to step into the role in September. Ms Bardwell was appointed to the role following an “extensive international search process”, which Woolworths Group Chair, Scott Perkins said was supported by external consultants. “We are thrilled to announce the appointment of Amanda as the incoming and 13th Managing Director and Group CEO of Woolworths Group, as the Group starts its next century of creating better experiences together for a better tomorrow,” Mr Perkins said in a statement. When Ms Bardwell steps into the role, she is set to receive a generous pay packet of $2.15 million, as well as additional generous bonus incentives. While this number seems extravagant, it pales in comparison with the $7.65 million Banducci took home last year. Mr Banducci’s pay was even higher in 2022, with a take home pay of $8.37 million, but money was knocked off from his short term bonuses, after the discovery that there was nearly $600 million in underpayments across Woolworths’ payroll going back years. The revelation of his extortionate pay packet in the wake of his resignation has angered many, with social media users airing their grievances over his salary, given that many Aussies continue to struggle to keep up with the rising costs of supermarkets as the cost of living crisis continues. Mr Banducci’s retirement was announced in a statement to the ASX on Wednesday morning, with the former boss saying it has been a “privilege” to be a member of the Woolworths team and one he has “never taken for granted”. A spokesman for Woolworths said Mr Banducci’s retirement announcement was not connected in any way to the recent Four Corners interview. Image credits: Woolworths

Money & Banking

"I think I'm done": The question that made Woolies CEO leave interview

Woolworths CEO Brad Banducci has cracked under the pressure during a tense interview with ABC's Four Corners. The supermarket boss sat down with reporter Angus Grigg as part of a deep dive into the supermarket industry in Australia amid the ACCC's investigation into allegations of unfair price gouging. The program questioned how supermarkets have been profiting from rising prices amidst the cost of living crisis and spoke with a number of key players, including Banducci and Coles boss Leah Weckert. The supermarkets have long denied the allegations have since become the focus of investigations by both the Senate and the Australian Competition and Consumer Commission (ACCC). “Rod Sims, the former head of the ACCC, says that we have one of the most concentrated supermarket [sectors] in the world, is he lying?” Griggs asked Banducci. “It’s not true. [He’s] retired, by the way,” Banducci said. The comment caught Griggs off guard, to which he responded, “I don’t think you would impugn his integrity and his understanding of competition law. He retired 18 months ago.” Banducci then began to appear agitated and asked if his comments could be removed. <blockquote class="twitter-tweet"> This is what happened when Four Corners asked Woolworths CEO Brad Banducci about the lack of competition in the Australian grocery market. Watch the <a href="https://twitter.com/hashtag/4Corners?src=hash&ref_src=twsrc%5Etfw">#4Corners</a> documentary tonight: <a href="https://t.co/dDRYGLaw2i">https://t.co/dDRYGLaw2i</a> <a href="https://t.co/bsrJD9IETB">pic.twitter.com/bsrJD9IETB</a> — ABC News (@abcnews) <a href="https://twitter.com/abcnews/status/1759391473567490367?ref_src=twsrc%5Etfw">February 19, 2024</a></blockquote> “Can we take that out? Is that ok? Angus, are we going to leave it in?” he said. “I shouldn’t have said that about Rod, about him being retired. I mean, he is retired, but I shouldn’t have said that. Are we going to leave that in there?” Upon being told that his comments were “on the record” and would not be taken out, Banducci said, “I think I’m done guys.” “I do this with good intent, and I don’t do this with bad intent,” he said as he walked away. “Really, you’re walking out?” Grigg asked. Banducci then disappeared from view, reportedly to talk with his PR team, before returning a few moments later to complete the interview. Speaking to ABC’s News Breakfast on Monday after the episode aired, Griggs called the move “pretty startling”. “I think it shows you that, there you have the boss of the largest supermarket chain in the country really unwilling to face too many questions,” he said. “It shows how little scrutiny they’ve had over the years and I think that’s a really big problem.” Image credits: ABC

Money & Banking

Woolies boss grilled for scrapping Aus Day merch

Woolworths chief executive Brad Banducci has shared the reason why the retailer chose to drop Australia Day merchandise. The supermarket giant copped some <a href="https://www.oversixty.com.au/finance/money-banking/woolworths-under-fire-for-dropping-australia-day-merch" target="_blank" rel="noopener">backlash </a>after they announced that they would stop selling the merch, with even opposition leader Peter Dutton calling for a <a href="https://www.oversixty.com.au/news/news/peter-dutton-calls-for-woolworths-boycott" target="_blank" rel="noopener">boycott</a> for their decision. They have since issued a full-page advertisement insisting the supermarket giant is not anti-Australia Day, which Banducci was grilled for in his latest appearance on the Today show. “We aren’t trying to ‘cancel’ Australia Day, rather Woolworths is deeply proud of our place in providing the fresh food that brings Australians together every day,” Banducci wrote in the letter. “So you’re not anti Australia today as a company?” Today show host Karl Stefanovic asked in reference to the letter. “Karl, we are a very proud Australian company. We’ve been around for 100 years. "We have 178,000 hard working team members who are going to be in store doing the right thing for our customers on Australia Day, and we’re passionate about this country,” the Woolworths chief executive replied. “But you’re not anti Australia Day?” Stefanovic asked again. Banducci replied saying that the day “means different things to everyone” and that he supports Aussies to commemorate the day in whatever way they wish. He added that while customers won't be able to buy Australia Day merch at their stores, they will decorate their stores across the country in “green and gold” to commemorate the day. “You must have serious regrets about this?” Stefanovic grilled. “I think we could clearly have done a better job of explaining our decision, that’s why I’m here,” Banducci replied. “I do feel anxious about the impact that this is having on our team. They are proud, hard working Australians, and for them to be seen as anti-Australian or woke is fundamentally unfair.” He added that this decision was made 12 months ago when they found that there was “gradual decline” in demand for the merchandise. Images: Today

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Major supermarket director slams "woke" rivals' Australia Day boycott

John-Paul Drake, director of family-owned Drakes Supermarkets, has slammed rival supermarkets for moving away from stocking Australia Day merchandise. The fiery rant posted on social media came after the independent grocery retailer, which has 66 stores across South Australia and Queensland, shared their latest catalogue promoting Australia Day. The supermarket director said that his objection to “wokeworths” was about “choice”. “Whether you choose to celebrate Australia Day or not is totally up to you,” he wrote. “As a retailer, it’s my responsibility to let my customers choose if a product is suitable for them. “Just because you’re lactose-intolerant, does that mean I shouldn’t sell dairy products in store? How would you feel if I told you I didn’t like chocolate so we’ll no longer be selling it? “I agree that there is a broader discussion to be had around the date we celebrate our country," he added. “But until that date is changed, I will choose to gather with my friends and family and celebrate how bloody lucky we are that we live in a country where we can choose to have these kinds of debates.” He added that he understands some "may not agree with me, and that's ok." “Some of you may choose to boycott our stores – and I respect your right to choose where you spend your money,” he wrote. “I do ask, however, that you respect my team if you do enter our stores. They do not deserve to cop abuse for my values.” <blockquote class="instagram-media" style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 540px; min-width: 326px; padding: 0; width: calc(100% - 2px);" data-instgrm-captioned="" data-instgrm-permalink="https://www.instagram.com/p/C2Q56xUvOVW/?utm_source=ig_embed&utm_campaign=loading" data-instgrm-version="14"> <div style="padding: 16px;"> <div style="display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;"> </div> </div> </div> <div style="padding: 19% 0;"> </div> <div style="display: block; height: 50px; margin: 0 auto 12px; width: 50px;"> </div> <div style="padding-top: 8px;"> <div style="color: #3897f0; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: 550; line-height: 18px;">View this post on Instagram</div> </div> <div style="padding: 12.5% 0;"> </div> <div style="display: flex; flex-direction: row; margin-bottom: 14px; align-items: center;"> <div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(0px) translateY(7px);"> </div> <div style="background-color: #f4f4f4; height: 12.5px; transform: rotate(-45deg) translateX(3px) translateY(1px); width: 12.5px; flex-grow: 0; margin-right: 14px; margin-left: 2px;"> </div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(9px) translateY(-18px);"> </div> </div> <div style="margin-left: 8px;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 20px; width: 20px;"> </div> <div style="width: 0; height: 0; border-top: 2px solid transparent; border-left: 6px solid #f4f4f4; border-bottom: 2px solid transparent; transform: translateX(16px) translateY(-4px) rotate(30deg);"> </div> </div> <div style="margin-left: auto;"> <div style="width: 0px; border-top: 8px solid #F4F4F4; border-right: 8px solid transparent; transform: translateY(16px);"> </div> <div style="background-color: #f4f4f4; flex-grow: 0; height: 12px; width: 16px; transform: translateY(-4px);"> </div> <div style="width: 0; height: 0; border-top: 8px solid #F4F4F4; border-left: 8px solid transparent; transform: translateY(-4px) translateX(8px);"> </div> </div> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center; margin-bottom: 24px;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 224px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 144px;"> </div> </div> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;"><a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none;" href="https://www.instagram.com/p/C2Q56xUvOVW/?utm_source=ig_embed&utm_campaign=loading" target="_blank" rel="noopener">A post shared by jp drake (@shake.and.drake)</a> </div> </blockquote> This comes after <a href="https://www.oversixty.com.au/finance/money-banking/woolworths-under-fire-for-dropping-australia-day-merch" target="_blank" rel="noopener">Woolworths</a> confirmed that it would no longer be selling Australia day merchandise last week, with Big W and Aldi following suit. Opposition Leader Peter Dutton was quick to call for a <a href="https://www.oversixty.com.au/news/news/peter-dutton-calls-for-woolworths-boycott" target="_blank" rel="noopener">boycott</a> against the supermarket giant, for their "woke agenda". Coles, on the other hand, confirmed that they will continue to sell a small-range of Australia Day themed products for those who wish to celebrate the day. Images: Instagram/ Facebook

Legal

Woolies store vandalised over controversial Australia Day decision

A Woolworths Metro store in Brisbane has been vandalised over the supermarket giant's controversial decision to not stock Australia Day merchandise. The Woolies in the north-east suburb of Teneriffe was hit with a flare and graffitied with the message "5 days 26 Jan Aussie Aussie Oi Oi Woolies f*** u” on the side of the building. One local shared on social media that a flare was also set off at the front entrance, setting off the fire alarm about 5am on Monday morning, shortly after staff were seen cleaning the graffiti. Queensland Fire and Emergency Services confirmed three crews “responded to an alarm activation” at the store, where firefighters found smoke at the scene and ventilated the area. They left the vandalised store at 6am, where police took over the scene. “Thankfully no team members or customers were injured as this occurred before the store opened,” a Woolworths spokesperson said in a statement. “We’re grateful to the police and fire brigade who attended." “There’s no reason for vandalism and we’ll continue to liaise with Queensland Police.” The vandalism comes just days after the supermarket giant <a href="https://oversixty.com.au/finance/money-banking/woolworths-under-fire-for-dropping-australia-day-merch" target="_blank" rel="noopener">announced</a> they would not be stocking any specialised merch ahead of Australia Day. Woolworths shared that the reason for pulling Aussie decorations off the shelves was due to the “gradual decline” in demand for the merchandise over the years and “broader discussion” about the January 26th date and “what it means” to different parts of the community. “While Australian flags are sold within BIG W all year round, we don’t have any additional themed merchandise available to purchase in-store in our Supermarkets or BIG W ahead of Australia Day,” a spokesperson said. “We know many people like to use this day as a time to get together and we offer a huge variety of products to help customers mark the day as they choose.” Image credits: 7News / Shutterstock

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