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TheFinancialReview

National Agenda

Criticism on plastic collectibles worth it, says Woolworths boss

Woolworths chief executive Brad Banducci says collectables programs are worth the effort for retailers even though they trigger poor customer behaviour and have been labelled environmentally irresponsible. 
  • Coles and Woolworths have come under fire for promoting plastic collectables, while simultaneously removing single-use plastic bags  
  • The promotions are helping to attract customers and boost sales amid an unprecedented decline in spending in supermarkets. 
  • Coles' Little Shop 1 promotion was successful last year, boosting like for like sales by 5.1 per cent. 

Takeout

Brands need to be sensitive to the potential risks in short-term promotional activities, which may see seasonal spikes in consumer dollars but could impact long-term brand-customer relationship. Marketers need to be able to respond to consumer criticism with evidence of the benefits of such promotions.  

Source: The Australian Financial Review - Woolworths CEO defends collectables