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Should Nestle Face Price Gouging Questions As Woolworths Boss Defends Woke Culture

Woolworths spin doctors have been working overtime, in an effort to repair the damage caused by the supermarket retailers, dropping of Australia Day merchandise, and their support of the Yes vote, also causing a problem was management support of an aboriginal push to change Australia Day with the current date which is supported by the bulk of Australians being labelled “Invasion Day”.

Currently Woolworths the owners of Big W, who are in a head on fight with archrival Kmart, who is quietly folding their struggling Target stores into the successful Kmart operation, want to quickly change the agenda ahead of the Companies reporting on Wednesday of their last quarter financials.

The South African born CEO of Woolworths, Brad Banducci, did a recent interview with the Financial Review, who are owned by Nine Media who benefit considerably from the millions that Woolworths spends with them.

Recently Banducci, faced a bruising political bunfight with Opposition Leader Peter Dutton, over his decision not to support Australia Day, instead choosing to push China’s Lunar New Year celebrations, a move that has got him and other Woolworths management offside with consumers and politicians, ahead of an inquiry into allegations of price gouging by Woolworths during the past year.

Dutton called for a boycott, and this hurt the business with talk back radio slamming Woolworths for their actions.

Brad Banducci, Woolworths.

Ironically, the impact of their decision which was not revealed until January 2024 will not show up in the latest financials.

Banducci claims “Our customers are saying focus on delivering value for us and not getting engaged in conversations that are broader than that.”

He has not explained how suppliers such as Nestle can justify increasing the price of their Soothers sold at to $6.70 for a pack of three when 18 months ago, they were selling for $3.95.

Nestle Soother are being sold at Woolworths IGS Supermarkets and Coles for $6.70

At Healthylife the same pack of Nestle Soothers is selling for $5.99, they claim that the Nestle reccomended retail price is $6.50.

At The question of value is one that has increasingly moved centre stage for Woolworth with consumers spoken to by ChannelNews claiming that the retailer is “price gouging”.

The big question is whether their suppliers are actually price gouging and Woolworths is going along with it because of the margin benefit.

In the case of Nestle they have not only lifted the price they have also reduced the size of their Soothers.

Shortly Banducci will be centre stage – at a parliamentary inquiry called by the Greens which is likely to blame the two dominant supermarkets, Woolworths, and Coles, for hitting household budgets amid higher interest rates claims the AFR.

However, the big question is the justification of the price rises that suppliers such as Nestle are passing on to both Woolworths and consumers.

Banducci claims one of his greatest fears is “growing out of touch with shoppers”.

Really, a simple poll of his customers would have told him that the bulk of his customers more than 60% voted No in the recent referendum debate.

Australia overwhelmingly rejected a plan to give greater political rights, to Indigenous people that Woolworths is supporting over many other Australians, in the referendum. All six states voted No to a proposal to amend the constitution to recognise First Nations people and create a body for them to advise the government.

But despite this sentiment Woolworths chose to enter the political arena splashing cash on a YES vote that went pear shaped.

When AFR journalists asked “How much does a customer spend every week with Woolworths? $145,” he says ahead of delivering half-year results on Wednesday.

The bottom line is that instead of sticking to retail issues and the growth of the business, he chose to endorse a move into the political arena, which several observers describing Woolworths as a “woke ran business”.

Banducci admits he missed the cultural impact of the decision to cull the Australia Day merchandise. He says he was “broadly aware” that the supermarket had decided to drop the Australia Day merchandise but adds that he wasn’t involved in the removal of a line of products that posted just $2 million in sales in one month, a drop in the ocean compared with others.

With voter rage mounting at growing price rises, Labor has asked the competition regulator to investigate the supermarkets, and Prime Minister Anthony Albanese has suggested their conduct could be “an abuse of market power.”

Banducci admits the group misread its customers’ priorities.

It appears that the purpose of the AFR one on one interview was designed to try and refuse several issues ahead of the Companies executives having to face analysts and journalists on Wednesday.

Woolworths has been in strife before according to the AFR, one was the underpayment of staff an issue that could cost the retailer over $700 million.

Big W and Woolworths is separately facing legal action from the Fair Work Ombudsman in a test case which is likely to determine how workers should have been paid, which could inflate that figure even more.

There were also two workplace deaths last year, prompting questions about the company’s safety standards as it spends billions on new distribution centres.

Questions are still being asked as to whether he is still the right CEO to lead the big Supermarket who in the past has been accused of being a monopoly.

Recently as the political blowtorch was being applied Woolworths lowered the prices on some items, although both Coles and Woolworths are blaming cost increases from suppliers as one of the main reasons shelf prices are going up.

“If you get too stressed, you make bad decisions,” he says.



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