Sales Slow At Australian Grocery Giant Woolworths Due To ‘Bag Rage’
Australia's biggest grocer Woolworths Group said it rapidly lost sales momentum after starting to charge shoppers for plastic bags, sending its shares lower.
The slowdown, combined with signs of a revival at major rival Coles, where bags are still free, signals a possible end to years of outsized growth at Woolworths, which has dropped prices heavily to win business.
It also shows the financial cost of the backlash by Australia's customers against the move, with shoppers cutting purchases they couldn't carry home. Despite the so-called "bag rage", Woolworths has stood by the levy, betting opposition to it will be shortlived.
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