Woolworths has been slammed in a fiery debate over the supermarket giant’s controversial sign banning a common wearable item from entering stores.
CommSec Chief Economist Craig James reveals Australians are cautiously trying keep their money in their pockets as they struggle to make ends meet.
Mr James’ comments come as Woolworths reported worse than expected financial results for the March quarter.
“The mood changed at Christmas/ New Year according to Woolworths, they [consumers] became decidingly more cautious,” he told Sky News Australia.
“Very, very cautious in terms of overall spending.
“The good news, I suppose for shoppers is the average price inflation we are seeing at stores like Coles and Woolworths has come down.”
The intense debate erupted on Sunday when a photo of a sign instructing a ban on bags in one of the stores was posted on social media platform Reddit.
“No school bags instore between 7am – 5pm,” the bright orange poster on a Woolworth’s entry sign read.
Shoppers were quick to lambast the signage as they expressed concern opportunistic thieves would plant a watchful eye on the bags containing profitable items. Picture: Reddit
In clear black capital letters, it continued: “Please leave school bags at store entry gates.”
Shoppers were quick to lambast the signage as they expressed concern opportunistic thieves would plant a watchful eye on the bags containing profitable items.
“My local one (Woolworths) tries to enforce this but nothing they can do. No way in hell my son’s leaving his bag with expensive laptop unattended at the door,” one person said.
“For real. They may as well just put a sign up saying ‘Free MacBook Air Collection Area’,” responded another.
A third person confirmed the alarmed customers’ theories, saying their bag was once stolen after it was left outside a store.
“Had to do this growing up in a small regional town in NSW. One day, I came back to the spot and my bag was swiped :(” they said.
“When I asked if they could check the cameras, I was hit with ‘we don’t take responsibility for any items lost by customers actions’ in a passive aggressive tone. That was a fun day going to school without any of my books or sports stuff.”
When another angry customer questioned if Woolworths would take responsibility for stolen items in the bags, a person claimed the supermarket giant would not.
“Well… No? I think this strategy is dumb because staff don’t get paid enough to enforce this, high traffic store, impossible to police, not enough total staff. It’s really a bad band aid solution to stock loss,” they said.
Ritchies IGA Chief Executive Fred Harrison discussed the “situation” where Coles and Woolworths are “dominating” new sites.
This follows a senate inquiry into price gouging from the major supermarket chains and the bid to increase competition in the market.
“The best thing we can do is to introduce more competition and more variety and more choice – and that is by having more supermarkets including people like Ritchies and other independents occupy these future locations,” Mr Harrison told Sky News Political Editor Ed Boyd.
“To recommend to reverse the onus of proof of dominant companies … is the key.
“Instead of the ACCC having to prove that there’s going to be a lessening of competition. Put the onus back on the chains to prove that there won’t be a weakening of competition.”
One other person explained it was “the medical and beauty sections” which suffered the most stock loss, as thieves successfully sought to clear them out.
“When I worked there, kids stealing a Chupa Chupa was the least of our worries. We had plenty of organised crime gangs coming in and loading up trolleys with Shampoo, Razors and Medication,” they said.
Woolworths told SkyNews.com.au it does not have a policy against school bags, and they are in fact allowed in the stores.
The supermarket giant said the sign shown at this one store was not official and it has since been removed.
“There has been no change to our policy regarding school bags in our stores. The sign has been removed from the store,” a Woolworths spokesperson said.