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Woolworths CEO’s letter to staff leaked ahead of Australia Day

Woolworth’s CEO has addressed the supermarket’s controversial Australia Day move in a leaked letter sent to staff, stirring further backlash online.

Woolworths removes adverts to ‘calm down angry customers’ over Australia Day decision

Woolworths’ CEO has defended the supermarket’s controversial Australia Day decision in a leaked letter to staff, arguing the supermarket is not “cancelling” the public holiday and explaining why stores are displaying banners for Diwali and Chinese New Year.

The supermarket giant has come under fire after it was revealed earlier this month it would stop selling Australia Day merch following a “gradual decline” in sales.

In a letter sent to staff last week, Woolworths Chief Executive Brad Banducci explained the reasoning behind the decision and apologised to staff for the “aggressive” backlash they have received.

“I want to personally apologise to all of you for the way our merchandising decision has been received – and how this has resulted in hurtful and inappropriate reactions directed at you, our team member,” Mr Banducci wrote in the letter.

“I know that many of you have received negative and aggressive comments – and in some cases acts. I am deeply sorry that you are being subjected to that.”

Two Woolworths stores have been vandalised in Brisbane, with messages spray-painted on windows urging others to boycott the supermarket.

A letter sent by Mr Banducci to staff has been leaked.
A letter sent by Mr Banducci to staff has been leaked.
The CEO apologised to staff for the “aggressive” backlash they have received.
The CEO apologised to staff for the “aggressive” backlash they have received.

Defending the announcement, Mr Banducci said the supermarket is not “trying to ‘cancel’ celebrating the Australia Day Long weekend”.

“We are a proud Australian and New Zealand retailer and, like so many others across Australia, I am proud to be an Australian citizen and deeply grateful for the opportunities that Australia has afforded me and my family,” he said.

The South African born CEO also addressed why stores have decided to display banners for Lunar New Year or Diwali “but not our own national day” – in a move that was labelled “a disgrace” by some.

“Celebrations like Diwali and Lunar New Year are often centred around connection over food, and as a business we are committed to supporting events and occasions like this for our customers and team,” Mr Banducci wrote, despite some arguing Australia Day is often celebrated with barbecues.

“We know that not every Australian marks Australia Day, in the same way and it’s important to us that all customers and team feel safe and a sense of belonging when they are in our stores.”

The letter also reiterated that sales of Australia Day merchandise had been dropping in recent years.

“Our commercial decision to not stock specific Australian Day general merchandise was made on the basis of declining sales. In recent years these sales have declined to less than $1000 per Supermarket over the month of January.

“BIG W has not sold Australia Day merchandise for a number of years,” the letter continued.

“Rather than stocking those imported products, Woolworths Supermarkets is focusing on continuing to celebrate the best of Australian fresh food for Australia Day long weekend gatherings with family and friends.”

The CEO explained why Diwali and Lunar New Year banners have been displayed in stores. Picture: NCA NewsWire/Joel Carrett
The CEO explained why Diwali and Lunar New Year banners have been displayed in stores. Picture: NCA NewsWire/Joel Carrett

Mr Banducci also confirmed Woolworths had engaged with the Australia Day Council “to seek guidance on the evolved meaning on Australia Day 26 January” as well as their First Nations Advisory Board and Aboriginal and Torres Strait Islander team.

He listed “numerous ways” the company is encouraging customers and their team to celebrate Australia including allowing staff to dress up on the day and selling Australian and Aboriginal and Torres Strait Islander flags all year round in Big W.

The letter has since been met with backlash online, with some arguing Mr Banducci is “out of touch” and has “failed” in his damage control.

“Astoundingly Banducci’s reasoning behind the decision is because ‘Celebrations like Diwali and Lunar New Year are often centred around connection over food’ … This bloke is so out of touch with Aussies he fails to recognise that we celebrate our national day with barbecues, family picnics and parties. His hollow argument is a joke and the hole he is digging for himself and Woolworths is getting deeper,” one person wrote.

“Failed damage control,” another commented online.

“A gaslighting letter from Brad,” another wrote.

The letter comes after the CEO copped a grilling by hosts on 2GB radio and breakfast TV programs on Wednesday morning.

During his appearance on Today, host Karl Stefanovic asked Mr Banducci “So you’re not anti-Australia Day as a company?”

“Karl, we are a very proud Australian company. We’ve been around for 100 years. We have 178,000 hardworking 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,” Mr Banducci said.

“But you’re not anti-Australia Day?” Stefanovic asked again.

Mr Banducci copped a grilling on TV on Wednesday morning. Picture: Today.
Mr Banducci copped a grilling on TV on Wednesday morning. Picture: Today.

In a slight shift of tone, Mr Banducci conceded the day “means different things to everyone” and the supermarket leadership supported Australians to commemorate the day in whatever way they wished.

Over on Sunrise, host Natalie Barr took her turn questioning Mr Banducci, asking if it was the supermarket’s job to “tell Australians what they can and can’t buy”.

“The great thing about retail is we all make twin decisions. (The customers) have made their decision and we have made ours,” he replied.

Barr then probed as to why the retailer felt the need to take out full-page advertisements in newspapers this week, saying “it doesn’t sound like it has gone down well”.

“It has not gone down badly. It is a decision that we made collectively as a team,” Mr Banducci said.

Aldi and Kmart have also announced they will not be stocking Australia Day merch this year, the latter of which has not stocked merchandise for the last two years.

Originally published as Woolworths CEO’s letter to staff leaked ahead of Australia Day

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Original URL: https://www.heraldsun.com.au/business/companies/retail/woolworths-ceos-bizarre-letter-to-staff-leaked-ahead-of-australia-day/news-story/75ae7c8d8a12790984a02b64b933340c