Woolworths share price in the red as CEO denies trying to ‘cancel’ Australia Day

The Woolworths Group Ltd (ASX: WOW) share price is in the red today.

Shares in the S&P/ASX 200 Index (ASX: XJO) supermarket giant closed yesterday trading for $36.42. In afternoon trade on Wednesday, shares are swapping hands for $36.23 apiece, down 0.5%.

For some context, the ASX 200 is up just 0.05% at this same time.

Factoring in today’s intraday loss, the Woolworths share price is down 3.3% since the opening bell rang on 2 January. Over that same period, shares in rival Coles Group Ltd (ASX: COL) have dropped 2.6%.

Which indicates that, to date, the ASX 200 retail stock hasn’t suffered significant investor backlash for its decision not to stock Australia Day-related merchandise. Nor has it benefited.

CEO says Woolies isn’t trying to cancel Australia Day

Despite any immediate, apparent impact on the Woolworths share price, CEO Brad Banducci released a media statement today saying, “We aren’t trying to ‘cancel’ Australia Day.”

He said that the company’s decision not to sell Australia Day merchandise “was made on the basis of steeply declining sales” of those items in past years.

Banducci added:

Rather than stocking imported Australian-themed merchandise, Woolworths is focused on what we do best 365 days of the year – providing the best of Australian fresh food for Australia Day long weekend gatherings with family and friends and working hard to ensure we deliver great value. 

Earlier today, Banducci told news radio’s Ben Fordham on 2GB that he was “sorry about how we communicated it, our decision was a straightforward commercial one” (quoted by The Advertiser).

Continuing with the damage control initiatives on Nine’s Today Show, Banducci denied that Woolworths was an “anti-Australian” company.

“We are a very proud Australian company. “We’ve been around for 100 years,” he said.

As for Woolworths’ 178,000 “hard-working team members”, Banducci said, “I do feel anxious about the impact that this is having on our team.”

He added, “They are proud, hard-working Australians, and for them to be seen as anti-Australian or woke is fundamentally unfair.”

Woolworths share price snapshot

The Woolworths share price is up 4% over the past 12 months.

The post Woolworths share price in the red as CEO denies trying to ‘cancel’ Australia Day appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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