Woolworths and Big W Australia Day decision prompts Peter Dutton to call for boycott

Major retailers Woolworths and Big W have decided not to stock Australia Day merchandise this year due to a "gradual decline in community demand".

The decision has prompted Opposition Leader Peter Dutton to call on Australians to "boycott Woolworths", while Reconciliation Australia has welcomed the move.

But while Woolworths is the biggest retailer to make that announcement so far, experts say they're unlikely to be the last.

"I think we're now seeing, in a modern era, businesses, organisations — not just retailers — reflecting on that particular day," said Gary Mortimer, an expert in consumer behaviour and psychology from QUT Business School.

So why have large businesses been making decisions around Australia Day? And why now?

Woolworths and Big W not the only shops to move away from Australia Day

Woolworths Group said while it stocked Australia flags all year round, it wouldn't be stocking anything special for the occasion this year.

"There has been a gradual decline in demand for Australia Day merchandise from our stores over recent years," a spokesperson said.

"At the same time there's been broader discussion about 26 January and what it means to different parts of the community."

Mr Dutton said he wanted Woolworths to reverse its decision, and called for the prime minister to "call it out" and for CEOs to stop making decisions with a "woke agenda".

"I think people should boycott Woolworths," he told 2GB radio.

"I would advise very strongly to take your business elsewhere … until we get common sense out of a company like Woolworths I don't think they should be supported by the public."

Woolworths is not the first retailer to start moving away from Australia Day.

Last January, Kmart announced it would not sell merchandise specific to January 26.

"We respect that January 26 means different things to different people and we aim to foster an environment that is inclusive and respectful of both our customers and teams," a spokesperson said in 2023.

The ABC understands Aldi also will not be doing any special promotions for Australia Day. In previous years, the supermarket has sold Australia Day merch including T-shirts and flags through its Special Buys promotion.

Best & Less told the ABC it stocked an "offering of children's Aussie-themed clothing that has been available since last year".

However, Coles confirmed it would be stocking a "small range of Australian-themed summer entertaining merchandise throughout January".

The Reject Shop, Target and IGA have also been contacted for comment.

In response to Mr Dutton's comments, the federal government said the opposition leader was being divisive.

"Peter Dutton's priority is starting another culture war about the kinds of thongs and flags that supermarkets sell," Agriculture Minister Murray Watt told the ABC.

"I think it shows that he is really out of touch with what Australians really care about when it comes to supermarkets — and that's the prices they are paying at the checkout."

Attitudes toward Australia Day changing over time

Reconciliation Australia, a non-profit that advocates for reconciliation between Indigenous and non-Indigenous Australians, welcomed Woolworths' decision.

"We are encouraged to see more and more Australians take time to re-evaluate what we want our national day to represent and how we can create a better country — one that all Australians, including First Nations people, are proud to celebrate," the group said in a statement.

Although Woolworths' decision might have seemed sudden to some consumers, it's part of a shift that's been happening over time, Professor Mortimer said.

"There's less and less of us actually celebrating the day because we are aware of what that date means to many communities, including First Nations communities," he said.

"I think it's about recognising that community standards and community perceptions have changed, and sentiment towards that day has changed."

For years there has been growing debate about Australia Day and the appropriateness of celebrating it on January 26 — the day the British Flag was first planted on Sydney soil in 1788.

Many Aboriginal and Torres Strait Islander people view that date as "Invasion Day" and see it as a time of mourning, inappropriate for national celebrations.

Those who support keeping the national day on January 26 say changing it would be divisive and do nothing to address Indigenous disadvantage.

Richard Ralphsmith, one of the founders of Australian advertising company DPR&Co, said Woolworths likely decided that stocking Australia Day merchandise had become a "reputational risk" to their brand.

However, he said the decision could end up making other customers unhappy.

"I'm very sceptical about their argument that it's a result of declining sales. I think it's much more likely to be a risk assessment that they've made," he said.

"And I think in making that risk assessment, they're opening up or creating another risk — and that is upsetting or alienating the broad base of their customers. And that broad base of customers has no problem with it stocking Australian-themed merchandise."

Companies don't want to 'fuel further conflict'

Professor Mortimer said while Australians wanted a day to celebrate the nation, concern around that particular date appeared to be growing.

And he said there had already been a history of businesses changing their practices or products due to community concerns.

"I think like many things, we change over time as we reflect on those particular moments," he said.

"We saw Allen's Lollies change the name of their Redskins and Chicos confectionery products because those names have connotations that we never thought about a couple of decades ago."

Many Australians were also becoming "conflict averse" and tired of debate, said Andrew Laidlaw, a managing director of research and campaigns at Morrow Sodali, a large corporate communications firm.

Mr Laidlaw said that in an environment that was full of conflict, most consumers wanted to focus on celebrating what bound Australians together.

"From a company's perspective, you just won't be rewarded if you're perceived to fuel further conflict," he said.

The National Australia Day Council was unavailable to comment, but told the ABC the group was "committed to Australia Day being a day for all Australians to reflect, respect and celebrate".