Are you wondering whether to open your store on Australia Day, Monday, January 26, 2026? I've spoken to a few of my clients across Australia facing the same dilemma. Some told me that they would skip trading due to high penalty rates. Others will open. One told me that my business cannot afford not to open, but it will be staffed by family only. Another told me that, as they are a licensee near an official Australia Post office, which will close on January 26, they expect to get some of that traffic.

If you are unsure, use your POS System to run a few reports to see what your traffic and profit are on such days. The dissection profit report is worth looking at, as it shows traffic, sales, and profit.

Lessons from the Big Players

I had a few laughs at Woolworth's Australia Day backflip. In 2024, they ditched flags after low sales, with what I thought was one of stupiest retail marketing decisions ever, which sparked boycotts and even vandalism. Now, they've stocked up on an "Australia Day section". Woolworths is now highlighting "Aussie-made" food products and specific Aussie-made flags.

If you do not intend to sell Australian Day items, say nothing; there is no point in offending 70% of the Australian population. But I think that most retailers can put together some Australian items on a stand and post a sign that reads "Gifts for Australia Day," at no cost.

Tailored Tips to Maximise Sales

If you are going to be making Australia Day work for your store.

Start planning now.

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

Australia Day on January 26th represents our only national celebration. What was supposed to be a holiday meant to unite us in celebrating our beautiful, diverse country has become politicized. It indeed commemorates a day when much changed in Australia.

Australia Day trading hours

If your business operates on Australia Day, clear communication is essential. Display prominent signage, update your online trading hours, and ensure your storefront indicates you're open for business.

Local Support for Local Businesses

As a proudly Australian-owned Point of Sale provider, we are one of the few remaining, so we know how important it is to help local businesses maximize their Australia Day revenue. To that end, we are running our support lines today if you have a problem.

The Shifting Landscape of Australia Day Merchandise

Recent retail data reveals a significant decline in traditional Australia Day merchandise sales. According to industry reports, themed items like flags and novelty apparel now account for less than 1% of revenue in most stores during the holiday period.

Woolworths' Strategic Pivot

In 2024, Woolworths made headlines by announcing no Australia Day-themed products, citing "steeply declining sales" as the primary motivation. This announcement sparked controversy and accusations of being "unAustralian and woke," leading to boycotts.

For 2025, Woolworths has adopted a more nuanced strategy:

1. Reintroducing a limited selection of such merchandise
2. Heavily promoting family BBQ packs and Australian-made snacks
3. Focusing on "Perfect for Australia Day" food sections in stores

This approach balances traditional patriotic sentiment with more broadly appealing product categories that drive significant revenue.

Best Practices for Retailers

Data-Driven Merchandising

Successful retailers focus on consumer demands rather than social statements.

Emphasize Summer Essentials

Redirecting attention to seasonal products like sunscreen, camping gear, and reusable picnic sets allows retailers to capitalize on the holiday without relying on controversial-themed merchandise.

Partner with Local Suppliers

Showcasing Australian-made brands appeal to patriotic sentiment and supports local businesses.

The Future of Australia Day Retail

As the retail landscape continues to evolve, data-driven decision-making will be crucial.

Key Takeaways for Retailers

1. Use sales data to inform merchandise selection and placement
2. Focus on high-demand categories, e.g. here, summer gear
3. Showcase local partnerships to appeal to patriotic sentiment
4. Maintain a neutral stance on controversial issues
5. Offer flexible options to cater to diverse customer preferences

By adopting these strategies, retailers can maximize profitability during the Australia Day period while minimizing potential controversies.

Australia Day isn't a loyalty test in retail—it's a sales event. We need to focus on what actually drives revenue.

Usually, on Australia Day, I would share a cheerful greeting about what a wonderful country Australia is and how proud I am that we're an Australian company serving great Australian customers. 

But celebrating Australia Day has become controversial especially after Woolworths surprised us when it announced it would stop selling Australia Day merchandise.  While they claimed it was just a commercial decision due to declining sales, I'm sceptical. Even if dropping the merchandise was a business move, publicising it seems political to me and many others. After all, other retailers, e.g. ALDI, who pulled Australia Day items, did so quietly without making announcements. 

A holiday meant to unite us in celebrating our beautiful, diverse country has become politicized. And I think there are lessons here for retailers.

Woolworths said its decision to end its Australia Day celebratory products was due to lagging sales. Perhaps so. Few would have cared if the merchandise was available at Woolworth's; when I looked at the shops in my shopping centre, many stocked such items. Now, many do care. It will cost them both financially and in goodwill.

This illustrates what I've said for years - business and politics don't mix. It isn't a company's role to get involved in politics. 

What do you think about businesses getting involved in politics? I welcome your perspective.