Woolworths to put Aussie flags back on shelves to mark Olympic Games

Woolworths has confirmed Australian flags will return to its shelves in the lead-up to the Olympic Games after facing a backlash for removing them from stock prior to Australia Day.

The supermarket giant triggered controversy early this year when it decided to not sell merchandise related to the January 26 holiday in its stores.

The move propelled the company into the national debate about celebrating Australia Day, with some politicians, including Opposition Leader Peter Dutton, suggesting customers should boycott Woolworths stores.

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The company's chief executive Brad Banducci pleaded with shoppers not to take their disappointment about the decision out on Woolworths retail staff.

He also conceded the company's communications about the issue had been found wanting.

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But in a note sent to staff this week and seen by 9News.com.au, Woolworths managers said that locally-made flags will be back ahead of the Paris Olympics starting this month.

"The sale of the locally-made Australian flag is timed to arrive in stores ahead of the start of the Olympic Games," the note says.

"In selling the Australian flag, we acknowledge that we disappointed many of you and our customers when we decided not to sell Australian-themed merchandise in January this year.

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"We have listened and accepted that, as a proud Australian retailer, that many in the community expected us to offer customers the choice of purchasing the nation's flag when shopping with us."

Aboriginal and Torres Strait Islander flags will also be sold, but there will be no Australian-themed merchandise such as thongs and stubby holder for sale.

The Woolworths-owned BIG W will also continue to sell both flags.