Woolworths is intensifying its focus on value and customer experience as it heads into the Christmas trading season, aiming to rebuild consumer trust following recent challenges. The supermarket chain reported a strong start to its fiscal year, with first-quarter supermarket sales reaching $14.84 billion—exceeding expectations and further widening the gap with its main rival, Coles, which recently issued a rare profit downgrade.
Sean Barrett, Woolworths’ chief marketing officer, said the company is committed to delivering consistent quality, convenience, and value every day to regain customer confidence. Barrett joined Woolworths in January after a tenure with US retailer Albertsons and described the brand as maintaining steady market share growth over several quarters. He highlighted a 6.9% sales increase in the first quarter as evidence of continued momentum.
“Our focus extends beyond low prices to include the overall brand experience across all touchpoints, including physical and online stores, mobile apps, AI chat services, and loyalty programs,” Barrett said. Woolworths’ Everyday Rewards program remains a notable asset, regarded as one of the country’s most popular loyalty schemes.
In addition to pricing strategies, Woolworths is leveraging experiential campaigns such as the Disney Ooshies promotion, which Barrett described as a strong driver of sales and new customer acquisition. The company intends to build on this momentum by offering 500 Christmas products this season, including 120 chef-curated items and an $8 Christmas ham, while bolstering staff numbers to support peak demand, particularly for its direct-to-boot collection service.
The retailer also launched its “Tastes Like Christmas” advertising campaign to officially kick off the festive period. Featuring a trans-Tasman reach across Australia and New Zealand, the campaign emphasizes food, family, and affordability. Customer contributions via social media were incorporated into a unique Christmas carol available on Spotify, alongside curated holiday playlists, aligning with Woolworths’ strategy to centre customer voices in its marketing.
The campaign marks Woolworths’ first work with new creative agency Droga5, appointed in July, underscoring the company’s efforts to strengthen brand loyalty amid a challenging reputational landscape. Woolworths has faced scrutiny due to an ongoing court case initiated by the Australian Competition and Consumer Commission (ACCC) over allegations of misleading pricing, which has significantly impacted public trust in the brand.
Barrett acknowledged that the Australian supermarket sector remains “very concentrated” but stressed that Woolworths views competition more broadly than just Coles and Aldi, citing evolving market dynamics. While he declined to reveal specific future marketing initiatives, Barrett reaffirmed commitment to the brand’s longstanding “Fresh Food People” positioning, which will celebrate its 40th anniversary next year.
Against a backdrop of rising cost-of-living pressures impacting nearly 40% of Australians, Woolworths’ renewed emphasis on value and experience seeks to attract shoppers willing to spend during one of the highest-profile retail periods of the year. Both Woolworths and Coles appear poised for intensified competition as they vie for market share during the critical Christmas season.