‘Go woke, go broke’: Truth about claim Woolworths shares have tanked after Australia Day decision

Critics of a decision by Woolies not to stock Australia Day merch this year claim going “woke” is sending them “broke” to the tune of $2 billion. There’s just one issue.

About $2 billion has been wiped off the value of Woolies shares over the past week, which conservative commentators say is a direct result of negative consumer and investor sentiment.

Former Liberal MP Craig Kelly, now affiliated with Clive Palmer’s United Australia Party, took to social media yesterday to declare: “GO WOKE, GO BROKE.”

“Since announcing their ban on selling Australia Day merchandise, Woolworths shares have crashed 4.47 per cent – that’s around $2 billion wiped of the value of the Woolworths shares,” Mr Kelly wrote on X, formerly Twitter.

His post was accompanied by an image that’s now circulating widely online, showing a sharp market fall over the past five days.

Is it woke-induced?

What that selective snapshot fails to show is that the price of Woolworths shares was actually much lower in late November – months before the Australia Day decision and unlinked to any so-called “woke” incident.

The share price fell rapidly to a low of $34.20 on November 27, compared to yesterday’s result at the close of trade of $35.66.

And that’s still $2 higher than its 52-week low of $33.67.

Coles, which announced last week it will stock a range of merchandise to coincide with Australia Day, has also experienced a 5.03 per cent fall in its share price over the past five days – larger than Woolworths’ decline.

At the end of trade yesterday, Coles shares were priced at $15.48 compared to $16.30 last Wednesday. Six months ago, that value was $18.17.

And the broader market has experienced a volatile week, with the ASX down almost a per cent in the past five days.

Kos Samaras, director of polling firm RedBridge, said Mr Kelly’s line is one “being used by those convinced the Woolworths share price fall is a result of their decision not to sell Australia Day merchandise”.

“The reality is the fall is the result of a general fall in the stock market and potentially the upcoming Craig Emerson review,” Mr Samaras said.

The price fall is more likely linked to broader market volatility and a government review into the supermarkets. Picture: NCA NewsWire / Roy VanDerVegt

Dr Emerson, an economist and former Labor MP and minister, has been appointed by the government to lead a review of the Food and Grocery Code of Conduct.

“We have been clear — if the price for meat and fruit and vegetables is going down at the farm gate then families should be seeing cheaper prices on supermarket shelves too,” Prime Minister Anthony Albanese said of the probe.

“Supermarkets have a duty to make sure they’re providing affordable options for all Australians, especially when they’re making savings on their own costs.”

A long-lasting distraction

Woolworths had succeeded in catapulting that story out of the headlines and replacing negative sentiment about its contribution to the cost-of-living crisis, according to Abas Mirzaei, a senior lecturer in marketing at Macquarie University and author of the book Woke Brand.

“Historically, brands have tried to change the conversation by offering alternative topics for social media conversation, and media coverage,” Dr Mirzaei said.

“Walmart, the world’s largest variety supermarket, has done that in the past, to deviate its main criticism – [low] wages and employee poor treatment – by launching sustainability initiatives.”

Regardless of the motivation, he said it’s unlikely this will be a case of “go woke, go broke” but rather “go woke and suffer”.

“If we have four groups of consumers – supporters, opposers, indifferent, and perhaps the confused persona – Woolies’ move can only be praised by supporters at best,” Dr Mirzaei said.

“Even among the supporters, there are those who think Woolies’ move was unexpected, and not fully aligned with their previous practices.

“That’s why we can say that Woolies is the latest brand that has won the Social Justice Warrior) title, parachuting into a topic outside of their core business focus, and promise, with unclear connection to their recent social purpose-based marketing initiatives.”

Opposition Leader Peter Dutton called for Australians to boycott Woolworths. Picture: Richard Dobson

Appearing to advocate for societal change at a time of record profits in a cost-of-living crisis has led to “confusion, backlash, and backlash to the backlash”.

While many have celebrated the decision as momentum to change the date of Australia Day grows, he isn’t sure it will contribute to a meaningful outcome.

“This is another example of a brand offering short-term commercial solutions for longstanding, sensitive sociopolitical issues.

“This is another example of a brand trying to celebrate inclusion by practising exclusion, upsetting one group in order to respect another group. The outcome is never going to be uniting, but divisive.

“Letting down and ignoring a group of audience and sanctioning part of the society can only lead to further resistance to change, and greater push to maintain the status quo, ultimately disadvantaging the cause and the community the brand was aiming to support.”

Woolworths said the decision was based on declining demand. Picture: NCA NewsWire / Christian Gilles

It’s unlikely to take a devastating financial toll but the brand damage will probably linger, he added.

“In a market with only two major players, consumers migration may not be as noticeable, but it doesn’t mean that those negatively affected may easily forget and forgive the brand.”

This is especially the case given Australia Day is an annual event, and all eyes will be on Woolies next January to see if it repeats the decision.

One group will be upset either way, he pointed out.

A furious backlash

Last week, Woolworths confirmed it was not selling special Australia Day merchandise in stores due to “a gradual decline in demand” over recent years.

It also noted the call was in part inspired by “a broader discussion about January 26 and what it means to different parts of the community”.

“We know many people like to use this day as a time to get together and we offer a huge variety of products to help customers mark the day as they choose,” a spokesperson said.

“Woolworths and Big W celebrate the best of Australia every day, and we’re proud to support the farmers, producers, and suppliers who work with us.”

While Big W also won’t offer dedicated merchandise, the Australian flag is available year-round.

Police have released this image of the man who vandalised a Woolies in Brisbane.

News of the decision sparked outrage among right-wing politicians and conservative commentators alike, with Opposition Leader Peter Dutton calling for a boycott of the company.

Liberal Senator Hollie Hughes repeated the “go woke, go broke” line in an interview with Sky News host Paul Murray and also attacked the “left-wing woke agenda” at play.

Murray agreed Woolies was aiming to “get the woke points” by not “quietly” going about its business.

Sky News contributor Prue McSween declared: “It’s time to voice our opinion of woke corporates who are offending us. Hitting them at the cash register is the best way to do it.”

A number of consumers have expressed their anger, flooding social media with criticism and promises of a boycott.

Mr Samaras said there’s a lot of politics wrapped up in the anger, but pointed out that polling consistently shows most Australians are in favour of keeping things as they are.

“The majority of Australians are agnostic about what day we should celebrate Australia Day, although many would prefer it stay on the 26th. The debate about Australia Day is far more animated by politically engaged Australians, similar to the Voice referendum.”

The decision sparked plenty of controversy and upset. Picture: NCA NewsWire/Tertius Pickard

On Monday, a Woolworths store in the Brisbane suburb of Teneriffe was hit with a flare and vandalised by a masked man who’s seemingly unhappy about the decision.

He spray-painted the words “26 Jan”, “Aussie Oi Oi”, “Boycott Woolies” and “Woolies f*** you” on the windows and sparked a small blaze.

Emergency services were called at 5.10am when the fire set off an alarm inside the store. It was quickly extinguished, and police are investigating.