Sunrise presenter Nat Barr loses it at Woolworth's boss on live TV when she confronts him about the big Australia Day backlash – and he makes a shocking revelation

Sunrise presenter Natalie Barr has accused the Woolworths chief executive of trying to make a political statement about Australia Day, prompting the supermarket boss to insist he is not trying to 'cancel' the national holiday.

The supermarket giant shocked customers earlier this month when it announced it would not stock any products on January 26 due to declining demand and daytime sensitivities.

In response to the public backlash, the retailer has since taken out full-page newspaper advertisements with a letter written by its boss emphasizing that the retailer is not anti-Australia Day.

“We are not trying to 'cancel' Australia Day, but Woolworths is deeply proud of our place in providing the fresh food that brings Australians together every day,” wrote Woolworths CEO Brad Banducci.

The South African-born CEO faced a backlash from Barr when he appeared on Sunrise on Wednesday morning.

“Is it ultimately your role to tell Australians what they can and cannot buy?” she asked.

In his response, Mr Banducci took a swipe at rival retailers who had rejected Woolworth's move.

'The great thing about retailers is that we all make different decisions about what we want to stock. They made their decision and we made ours,” he said.

'We are focused on providing great value for everyday needs so you can mark the occasion and celebrate the Australia Day long weekend with friends and family. That is our focus.'

Barr asked if there was more to the decision, which Mr Banducci denied, insisting the decision was a commercial rather than political one.

“It's more than that, on this subject, isn't it? Does it make a political statement by not stocking Australia Day merchandise?” Barr asked.

Mr. Banducci hit back: “I don't think that's true.

'We focus on what we are good at, which is food and daily needs.

“There are pressures on Australian families and affordability, so we are focusing on what we do best, which is that.”

Barr also grilled Mr. Banducci about the newspaper ads, and why the supermarket felt the need to do so.

“It doesn't sound like it went well,” she said.

Mr Banducci defended the ads, but admitted that communication with shoppers could have been much better.

'It didn't go badly. It is a decision we made together as a team,” he explained.

'But I do worry that people who feel frustrated, who may not fully understand our message, risk taking the frustration out of hard-working staff.'

'I thought it was important to reiterate our position.

“We didn't say it as clearly as we should have in the beginning. That's the problem with Australia Day.'

“If nothing else comes from this, the clear message is: treat our team with the respect they deserve.”

Mr Banducci added that Australia Day merchandise sales have declined in recent years.

“That space in our store has gotten smaller,” he said.

“I'm a very grateful first-generation Aussie and I'm going to celebrate the classic way, which is at a barbecue with friends and family,” he told Barr.

Earlier on the Today Show, Mr. Banducci dodged an important question from host Karl Stefanovic.

“So you're not anti-Australia as a company today?” Stefanović asked.

“Karl, we are a very proud Australian company. We have been around for 100 years. We have 178,000 hardworking team members who will be in store on Australia Day to do good for our customers, and we are passionate about this country,” said Mr Banducci.

“But you're not anti Australia Day?” Stefanovic asked again.

Mr Banducci hit back, saying it “means different things to everyone” and supermarket management is backing Australians to commemorate the day in whatever way they can.

“You must seriously regret this?” Karl dug into it.

“I think we obviously could have explained our decision better, that's why I'm here,” Mr. Banducci responded.

'I am concerned about the impact this has on our team. They are proud, hard-working Australians, and it is fundamentally unfair to see them as anti-Australian or woke.”

Liberal Senator Matt Canavan spoke out in response to the Woolworths boss' comments later in the show.

“Brad is a man under pressure, Woolworths is under pressure and I want to thank all Australians for standing up to these unelected corporate elites who think they can dictate what should happen in this country,” he said.

Senator Canavan believes the retail giant is 'clearly trying to make a political statement' about Australia Day.