Woolworths has defended its controversial decision to not stock Australia Day merchandise in its stores ahead of the public holiday later this week.

Chief executive Brad Banducci told Today that a declining demand in sales of the merchandise was behind the move.

He conceded the decision was not communicated well to the public, saying “we could have done a better job explaining it”.

The front of a Woolworths supermarket.
The front of a Woolworths supermarket. (iStock)

“It is a commercial decision,” Banducci said.

“There are many other places you can buy Australia Day-specific merchandise. We focused on what we do best.”

Woolworths isn’t the only retailer that has dropped the merchandise, joining Big W and Aldi.

Coles announced it would be stocking a “small range” of Australia Day-themed products.

“We are stocking a small range of Australian-themed summer entertaining merchandise throughout January which is popular with our customers for sporting events such as the cricket and tennis, as well as for the Australia Day weekend,” a spokesperson said.

Chief executive Brad Banducci told Today that a declining demand in sales in the merchandise was behind the move. (Nine)

However the Woolworths chief executive maintained the supermarket had not joined a campaign to cancel the holiday.

“We are celebrating Australia and what it means to be Australian, with the way we can celebrate it best – which is with food,” Banducci said.

“We could have done a better job of explaining the decision. Clearly that’s true.

“I feel the weight on myself and the impact that this is having on our team.

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

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