With Christmas and New Year over, attention has quickly turned to Australia Day as the country’s grocery giants face questions about how they will mark the day.

Woolworths has announced this year customers will notice more Australia Day signage in its stores than they did last year.

The company told the ABC it recognised many of its customers wanted to celebrate the day.

In 2024, the supermarket giant attracted significant heat after it announced it wouldn’t sell Australia Day merchandise in its stores in the run up to Australia Day.

Former CEO Brad Banducci was grilled over the decision which resulted in the company publishing a full-page ad with major news outlets saying they were not “trying to ‘cancel’ Australia Day”.

Woolworths said the decision not to stock Australia Day merchandise in their stores last year was based on “steeply declining sales.”

At the time, a Woolworths spokesperson said, “there’s been broader discussion about 26 January and what it means to different parts of the community”.

On Wednesday,  a spokesperson for Woolworths said its stores would focus on the kinds of Australian food people liked to eat on Australia Day.

He also said BIG W, which is owned by Woolworths Group, would sell products people might want as they gathered over the long weekend.

Labor minister Annika Wells said Woolworths was entitled to stock whatever they liked on their shelves.

“It’s entirely a matter for retailers to sell what they think people want to buy,” Ms Wells said.

“People should choose to spend the day however they want.”

Last year, Opposition Leader Peter Dutton called for customers to boycott the supermarket giant over its decision.

Expert in consumer behaviour and psychology from QUT Business School, Gary Mortimor, said while those comments may have influenced this year’s decision, it was more likely a commercial one.

“The proportion of customers that indicated that they have a desire to have Australia Day products available in store so they can celebrate the day would have been more important than simply one politician,” he said.

Despite the furore last year, items such as Aussie flag thongs and bucket hats were available through some of Woolworths Group’s online outlets.

The company says this year it will sell a more extensive range through its Woolworths and Big W sites.

It also says its store shelves will feature Australian, Aboriginal and Torres Strait Islander flags, which are now made in Australia instead of China.

Professor Mortimor said the company’s move this year wasn’t “an entire backflip”.

“I think for a long time they’ve had Australia Day merchandise [in store],” he said.

“Last year, there was absolutely none. I think this year, in 2025, they’re aiming to deliver a balance.”

Kmart has not stocked Australia Day merchandise for the past two years and Aldi chose not to do any special promotions last year.

Coles said in a statement it would “continue to stock a range of summer entertaining merchandise throughout January” as the retailer has done in previous years.

“The range will offer a variety of items for customers looking to entertain with BBQs, parties, picnics or for those attending sporting events like the cricket and tennis, as well as for the Australia Day weekend.”

Reconciliation Australia has been contacted for comment.