Woolworths CEO's leaked email about customers sparks anger: 'Gaslighting us'

Woolworths has replaced Optus as Australia's most distrusted brand, closely followed by Coles, a new survey has revealed.

Woolworths customers seen standing outside a store. Inset, a Coles sign.
Woolworths has replaced Optus as Australia's most distrusted brand, closely followed by Coles, a Roy Morgan survey has revealed. Source: Getty/AAP

Well, it’s official.

Fed-up Aussies have declared they have lost their faith in Woolworths and Coles — deeming them the least trusted brands in the country. And unfortunately for Woolworths, they've taken out the top spot, with their CEO moving to warn staff of the unfavourable title via an email which hasn't gone down too well with some.

With the the cost-of-living crisis continuing to tighten its grip on shoppers’ wallets, more and more disgruntled customers have hit out at the companies online in recent years, many vowing to take their business elsewhere.

Just two years after they were heralded as two of the most beloved brands in Australia, it was announced on Friday the supermarkets had been shoved off the pedestal.

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According to a survey conducted by Roy Morgan, consumers have named Woolworths as the most distrusted brand — replacing Optus — with Coles following in second place.

“Distrust has a far more potent impact on consumer behaviour than trust,” Roy Morgan CEO Michele Levine said. “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.”

Left,  Woolworths Managing Director and Group CEO Amanda Bardwell's memo to staff. Right, stock image of shoppers scanning items at the self-checkout in a Woolworths store. Source: Facebook/Getty
Woolworths Managing Director Amanda Bardwell told staff the ‘most distrusted brand’ tag is not a reflection of how our customers feel about us at their local store. Source: Facebook/Getty

Despite the brutal fall from grace, Woolies has stated it is looking forward to a fresh start with its customers. Prior to the findings being released, Amanda Bardwell, Woolworths Managing Director and Group CEO, sent a memo notifying staff of the impending news.

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“[Customers] have been so patient with us as we continue to work hard to build back their trust in us,” she wrote, urging workers to pass along feedback they get from people in store.

“I want you to know that being the ‘most distrusted brand’ is not a reflection of how our customers feel about us when they shop in their local store.”

Bardwell said in every store she has visited over the Christmas and summer period she saw employees “moving mountains to put our customers first”.

“I know that building back trust in our brand will take time and focus from all of us, especially as many customers continue to face cost-of-living pressure. And I know that you’re doing everything you can right now to ensure good product flow, good value, and good acts.”

The memo was later leaked online by a frustrated Woolies staff member who claimed it was an attempt to “gaslight” employees into thinking it was “them that lost the trust of the customer”.

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“As someone who works in the industry at a level where I see prices and deals, let me tell you, they ARE ripping you off,” the anonymous person posted, alleging the funds were used to cover “massive corporate overheads”. They claimed staff were also sometimes doing the work of two to three people.

When contacted by Yahoo News Australia for comment, a Woolworths spokesperson referred to Bardwell’s email.

The survey follows a senate inquiry into grocery pricing and the Australian Competition and Consumer Commission (ACCC) launching legal action against Coles and Woolworths for alleged breaches of consumer law in September.

Consumer specialist Professor Gary Mortimer from Queensland University of Technology (QUT) told Yahoo News earlier this year he believes that both supermarkets — which announced hundreds of millions of dollars in profit for the 2023-24 financial year — will be working hard to improve their reputations in 2025.

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“It’s fair to say that they’ve had a pretty big hit to their brand reputation both falling out of the top 10 most trusted brands report from Roy Morgan,” he said. “I think they’ll be working towards strengthening that brand trust again and reconnecting with their core consumers.”

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