President of the Returned and Services League in Australia Rear-Admiral Ken Doolan labelled the Woolworths campaign "unfortunate".
"I think they have taken the right action ... pulling it down," he told Network Nine.
"There is a very fine line to be judged here, where you are dealing with such sensitive issues and the Australian public speak very clearly and very loudly when that fine line is crossed.
"On this occasion unfortunately it was crossed, it was insensitive, it has been taken down."
The online campaign caused outrage among customers, who accused the supermarket giant for cashing in on Anzac Day.