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January, 2025

Woolworths and Coles now Australia’s most distrusted brands: Roy Morgan

The latest Roy Morgan Risk Monitor data has seen Woolworths and Coles take a huge hit to their reputations, recording the highest levels of distrust since Roy Morgan began tracking brand trust in late 2017.

Woolworths now replaces Optus as the most distrusted brand in Australia, with Coles closely following, recording the second-highest level of distrust. The Roy Morgan Risk Monitor surveys approximately 2,000 Australians every month to measure levels of trust and distrust of around 1,000 brands across 27 industries.

During the COVID-19 pandemic, Woolworths and Coles earned record levels of trust due to their high-profile media appearances and pandemic initiatives. However, as the cost-of-living crisis gripped the nation, public sentiment shifted dramatically with allegations of price hikes and profit-driven strategies emerging as critical drivers of distrust for both brands.

“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.”

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. The reputational standing of Woolworths and Coles not only affects their own businesses but also has broader implications for consumer confidence and market stability.

“The pandemic placed the major supermarkets at the centre of Australian lives,” Levine said. “But the goodwill they built during that period has been reversed by perceptions of too profit-motivated and unaffordable pricing.”

“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.

“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 Levine.