Aldi joins Woolies in dumping Australia Day merchandise

The supermarket giant will not sell themed products such as thongs in the lead-up to January 26.

Opposition Leader Peter Dutton has urged shoppers to boycott Woolworths over its decision not to sell Australia Day wares.

The federal government has slammed Mr Dutton, accusing him of trying to start a culture war.

Cabinet minister Murray Watt said the Liberal leader was out of touch with the concerns of regular Australians dealing with cost of living pressures and high food prices.

"His priority is starting another culture war about the kind of thongs and flags that supermarkets sell," he told ABC News.

Senator Watt reaffirmed the government's commitment to Australia Day, saying Labor supported keeping the public holiday on January 26.

The minister said he planned to attend a citizenship ceremony and barbecue on the day.

Business Council of Australia chief executive Bran Black said Mr Dutton's boycott call was unjustified.

"Businesses shouldn't be boycotted because they make commercial decisions based on demand for products from their customers," Mr Black told The Australian.

Nationals frontbencher Barnaby Joyce said Woolworths should concentrate on cheaper prices.

"I can't see why people should go shopping there until they realise that your job is a retailer, not a politician," he told Sky News.

State premiers have also weighed in on the conversation with NSW leader Chris Minns on Thursday saying the decision was "odd".

Newly anointed Queensland Premier Steven Miles called out Mr Dutton, saying he should concentrate on farmers' concerns over grocery store price gouging.

"It's a bit ironic that having spent years railing against cancel culture Peter Dutton is all of a sudden calling on people to cancel their visits to Woolies," he said on Friday.

"What products they stopped (selling), that's a decision for them.

"I've been much more focused on what they charge for groceries."

Australian Associated Press