Dutton calls for Woolworths boycott after Australia Day merchandise dropped

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Opposition Leader Peter Dutton has suggested shoppers should "boycott Woolworths" after the retailer announced it will no longer sell items to help mark Australia Day.

The Woolworths group, which includes Big W, said a "decline" in interest in the retail items was behind their removal from shelves.

Now, Dutton has hit out at the retail giant.

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"I think it's up to customers whether they want to go in and buy the product or not. If they don't want to celebrate Australia Day, well that's a decision for them, but I think people should boycott Woolworths," he told Nine's 2GB radio.

"Other companies haven't done it (stopped selling Australia Day merchandise) and on that basis, I think Australians should boycott Woolworths.

"I think (Woolworths chief executive) Brad Banducci should come out and announce that he's reversing the decision."

Woolworths said it will still sell Australian flags at Big W, which it does year-round.

"We don't have any additional themed merchandise available to purchase in-store in our supermarkets or BIG W ahead of Australia Day," a Woolworths Group spokesperson said.

"At the same time there's been broader discussion about 26 January and what it means to different parts of the community."

An example of the previous Australia Day merchandise sold at Woolworths.

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Peter Dutton is hoping for a good LNP performance in Queensland.

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Rival retailer Coles said it would continue to sell Australia Day merchandise.

"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.

Multiple local councils have dropped Australia Day events as attitudes shift on holding commemorations on January 26.