Woolworths' decision to reintroduce Australia Day merchandise in 2025 confirms the concerns many raised last year after it removed these products in 2024, citing declining demand and cultural sensitivities. I warned that it risked entangling business with politics. Now, with this reversal, it's clear those warnings were justified.

This situation highlights important lessons for businesses moving forward.

The Fallout from 2024

As soon as Woolworths announced it would not be selling Australia Day merchandise in 2024, the trouble started. People began voicing their dissatisfaction on social media. Then, Opposition Leader Peter Dutton called for a boycott. Woolworths' attempt to frame the decision as a response to "declining demand" and "broader discussions" about January 26 did not dampen the controversy.

Financial and Reputational Damage

Immediately, the financial impact was evident, reflected in customers voting with their wallets. The reputational damage was equally severe, with Woolworths labelled "unAustralian" by critics and its employees facing abuse from frustrated shoppers.

The CEO's Missteps

Then, the handling of the situation by CEO Brad Banducci's comments about the decision being "commercial" rather than political rang hollow. By stepping into the divisive debate of Australia Day, Woolworths blurred the line between commercial decisions and political statements.

2025: A Course Correction That Proves My Point

Fast-forward to now, and Woolworths has reversed its stance. The retailer said it will now sell Australia Day merchandise on a unique stand in its stores on Australia Day, again including Australian-made flags and themed products available in stores and online. A spokesperson admitted that last year's decision was a mistake, stating, "We listened and recognised that many customers and teams wanted us to do more to help them celebrate the day."

What Changed?

Customer Feedback

Woolworths acknowledged that many customers traditionally wanted to celebrate Australia Day, pushing the company to rethink its approach.

Focus on Local Products

By selling Australian-made flags instead of imported ones, Woolworths has aligned its offerings with patriotic sentiment while supporting local manufacturing.

Neutral Framing

This time, Woolworths avoided framing its decision within broader social or political discussions, focusing instead on meeting customer demand.

These changes reflect a strategic pivot back to customer-centric decision-making—a point I emphasised in my critique last year.

Why Businesses Should Avoid Political Stances

Woolworths' experience underscores why businesses should avoid politically charged issues unless they are central to their brand identity or values. Here's why:

Alienating Customers

In 2024, we saw that taking a stance on divisive issues can alienate customers. In competitive markets like retail, where products are similar, this leads to lost sales and reduced loyalty. If I am upset with Woolworths, what is the big ask for me to go to Coles? It is a right or left turn in my local shopping centre.

Financial Risks

Businesses thrive by meeting customer needs—not by engaging in ideological debates.

Employee Morale

Woolworths' statements acknowledge that the decision also affected its employees. Many of them felt hurt regarding their patriotism, which led to unnecessary tensions in the workplace. These people, much like you and me, take pride in our country and are deeply affected when its name is tarnished.

Perception Becomes Reality

Even if the announcement was made for commercial reasons—which I am not so sure—as Woolworths claimed last year, it can easily be interpreted as ideological—especially when amplified by public figures or media coverage. These people do not want the truth; they want a story.

Lessons for Businesses

Woolworths' reversal offers valuable lessons for companies navigating today's polarised climate:

Listen to Your Customers

Customer feedback should always guide business decisions, especially in retail, where consumer loyalty is critical.

Stay Neutral When Possible

Avoid stances on divisive issues unless they align directly with your brand values or mission.

Focus on Core Offerings

In Woolworths' case, providing great products at competitive prices should take precedence over engaging in cultural debates.

Communicate

If potentially controversial decisions must be made, consider whether you need to communicate and ensure that silence is golden.

Be prepared to reverse course.

If caught up in a potentially controversial decision, consider immediately reversing course. A simple comment like "I did not mean it like that..." can do wonders.

Why This Reversal Matters

When I wrote about this issue last year, my argument was simple: businesses should focus on their core operations rather than wading into politically sensitive waters. Woolworths' decision to pull Australia Day merchandise in 2024 was a misstep that hurt its reputation, finances, and employee morale—all of which could have been avoided by staying neutral.

This year's reversal validates those concerns. By reintroducing Australia Day merchandise and focusing on customer needs rather than broader social conversations, Woolworths is taking steps to rebuild trust and repair its brand image.

Final Thoughts

The lesson here is clear: when politics enters the boardroom, it rarely leaves unscathed. While businesses might feel compelled to engage with social issues to demonstrate values or connect with specific audiences, doing so often carries more risks than rewards—especially when those issues don't directly align with their brand.

This reversal isn't just about being right—it's about highlighting how businesses can avoid unnecessary controversies by staying focused on what they do best. In today's polarised world, neutrality isn't just safe—it's innovative business.

What do you think? Was Woolworths right to reverse its decision? Share your thoughts below!

As we are about to enter 2025, preparation is crucial for planning promotions throughout the year.

Here are the primary retail marketing holidays in 2025.

January 2025

1 January - New Year's Day: Kick off the year with resolution-themed promotions

26 January—Australia Day: Consider community-focused events and be mindful of people's sensitivities even if you do nothing.

29 January - Chinese New Year (Year of the Snake): Embrace wisdom and transformation themes with snake-inspired decor and promotions

February 2025

14 February is Valentine's Day. Stock up on cards, chocolates, flowers, and gifts for relationships.

April 2025

18 April - Good Friday: Start Easter promotions with baskets, chocolates, and egg decorating kits

20 April - Easter Sunday: Continue Easter-themed events and sales

May 2025

11 May - Mother's Day: Focus on personalised gifts, jewellery, and pampering products

June 2025

25 June - Islamic New Year: Stock appropriate greeting cards

30 June - End of Financial Year (EOFY): People want diaries; they often want to buy in this financial year for tax-deductible purchases.

July 2025

1 July - Start of the new financial year: Launch your stocktake sale to clear old inventory

September 2025

7 September - Father's Day: Promote gifts for dads, grandfathers, and father figures

22 September - Jewish New Year: Ensure you have relevant greeting cards in stock

27 September - AFL Grand Final: Stock team merchandise and consider hosting viewing events

October 2025

31 October - Halloween: Stock costumes, decorations, and treats

November 2025

Start Christmas promotions early this month. Most Christmas sales are now in November.

28 November - Black Friday: Plan a major sales events

December 2025

1 December - Cyber Monday: This retail shop in 2024 was a good sale date.

24 December - Christmas Eve: Highlight last-minute gift ideas

26 December - Boxing Day: Launch your post-holiday sales

31 December - New Year's Eve: Promote party supplies and "New Year, New You" products

Additional Retail Opportunities

Remember to check out fun retail days that align with your brand. For example, 29 January is Puzzle Day, an ideal day to market themed promotions on puzzle books. Visit here for more ideas to spice up your retail calendar.

Remember, planning and staying flexible is key to a successful retail year. Use this calendar as your guide, but always be ready to adapt to changing market conditions and consumer trends.

Note: If you want a better copy to download, click here.

Implementing a strategic best-seller labelling system can boost your retail sales through proven psychological triggers. Products with best-seller badges experience an increase in visibility and conversion boost. As a retailer in Australia, this simple yet powerful technique could be the key to driving customer interest and improving your bottom line. The majors like Amazon do it, so why not you?

The Power of "Best-seller" Labels

Best-seller labels tap into fundamental human desires for belonging and social validation. The sense of belonging drives purchase decisions by providing customer validation. Customers who see an item as popular are more likely to trust its value and quality. This psychological trigger can significantly influence purchasing decisions, making it a valuable tool in your retail arsenal.

Why This Works

This strategy is effective for several reasons:

Social proof

People tend to follow the crowd, especially when making purchasing decisions.

Attention-grabbing

The signs draw the eye, making these products stand out.

Simplifies decision-making

A "Best-seller" label can tip the scales for indecisive customers.

Good Value

Best-seller items are seen as good value.

Maximizing Product Visibility

Strategic placement of best-seller products in high-traffic areas and at eye level significantly impacts customer engagement. It is vital as these items sell. Consider these placement strategies:

• Position best-sellers near the entrance to catch immediate attention
• Place them at eye level on shelves for easy visibility
• Use end-cap displays to highlight top performers
• Put items that would sell well with this item around them.

Implementing the Strategy

Now that you understand the psychology and have your data, it's time to put your plan into action:

Best-seller Signs

I suggest purchasing some for a professional look. An essential tip is to ensure your signs are in red to grab attention and create urgency. Have a look at something like this.

Review your top seller's list.

Your Point of Sale (POS) system is a goldmine of valuable data. Here's how to use it to identify your top-selling items:

Go to Register reports.

Now pick "Top N Stock Sales for a Given Period."

Now, in the form put in the last 30 days and select a department

A report looks like this with your top sellers listed.

This report will list your best-performing products over the past month. Now, go through these items and select as many as reasonably possible. Choose as many items as possible from your top sellers' list; the best-sellers are generally evident when you look at the list. Typically, you get about five on every list.

To gain deeper insights, run reports for multiple timeframes:
- Month data for current patterns.
- Three-month data for seasonal patterns 
- Year data for long-term performance

The bonus of doing several runs is getting more best sellers. 

As a punt, you should get about ten items per department. You do not want more.

Select and label your best-sellers

Place your "Best-seller" signs next to or pointing at these items

Maintain the strategy

Set a reminder to repeat this process monthly, as this ensures your "Best-seller" labels always reflect current top performers

Tracking Performance Metrics

To measure the success of your best-seller strategy:

• Monitor sales of labelled items before and after implementation
• Track overall store revenue changes
• Observe customer behaviour and engagement with labelled products
• Analyze changes in product visibility and shelf time

Optimizing Customer Psychology

Remember, bestselling labels are more than signs- powerful psychological triggers. To maximize their impact:

• Use persuasive language on your labels (e.g., "Customer Favourite")
• Combine best-seller labels with limited-time offers to increase urgency
• Train staff to highlight best-seller items during customer interactions

Conclusion

The "Best-seller" labelling strategy is a simple yet powerful tool that leverages your POS system's data to boost sales. By highlighting your top-performing products, you're guiding your customers towards items that will likely satisfy them, increasing your sales.

FAQ

Q: How often should I update my bestseller labels?

A: We recommend that you update your bestseller labels monthly. This ensures that your labels always reflect your current top-performing products, keeping your store layout dynamic and engaging for repeat customers.

Q: What makes a bestseller on Amazon?

A: A bestseller on Amazon is primarily determined by sales volume within a specific category. The Amazon A10 algorithm considers factors such as sales velocity and sales history when ranking products. The bestseller status is updated hourly, reflecting recent sales performance

Q: Can I use bestseller labels for many of my products?

A: While it might be tempting, your customers are not fools and will smell a rat if you are not genuine. Plus, overusing the label can dilute its impact and reduce customer trust. Stick to labelling your actual top-selling items based on your POS data.

Q: What colour should my bestseller signs be?

A: Red is the most effective colour for bestseller signs. Red grabs attention.

Q: How do I determine which products are my bestsellers?

A: Use your POS software to generate a "Top N Stock Sales for a Given Period" report.

Q: Will this strategy work for all types of retail businesses?

A: I have seen it effectively used in many shops, from hamburgers to chemist shops. However, the impact may vary depending on your products and customer base. It's worth testing and measuring results in your unique retail environment.

Q: How does this strategy tap into customer psychology?

A: Bestseller labels leverage social proof, a psychological principle where people tend to follow the actions of others. Customers who see a popular product are likelier to trust its value and quality, influencing their purchase decisions.

Q: Can I combine bestseller labels with other promotions?

A: Absolutely! You can introduce if you want bestsellers for the promotion, too.

Q: How do I measure the success of this strategy?

A: Track sales of labelled items before and after implementation, monitor overall store revenue changes, observe customer behaviour around labelled products, and analyze changes in product visibility and shelf time. Our POS system will be able to provide this data.