Department stores in Australia - statistics & facts
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Department stores, a longstanding staple of Australia’s shopping landscape, are at a crossroads. Increased competition from online and specialty retailers has reduced in-store foot traffic, with the country’s annual department store revenue remaining relatively stagnant over the past decade. To stay relevant in an evolving retail ecosystem, Australia’s major department store chains have had to quickly adapt and grow their online footprint. Despite offering a broad array of products, ranging from clothing and cosmetics to furniture, appliances, and textile goods, the once unique offering of department stores has become ever more challenged by online retailers and marketplaces like Amazon, eBay, and Temu.
Mid-range and upscale department store brands Myer and David Jones also make their mark, but struggle compared to their discount counterparts. Their discount counterparts likely fare better due to their lower prices, reaching closer parity to their online marketplace rivals. Category-specific retailers have also eaten away at department stores’ previously higher success in certain categories like sporting goods, recreational equipment, and beauty products. Alongside this, online shifts in several consumer goods segments, including the rise of e-books and online print book purchases, have also hit department stores hard.
While Kmart stands strong, likely due to its switch in strategy to become the answer to affordable dupes of luxury items, in the coming years, Australia’s department stores will have to work hard to turn around their diminishing prominence. Building a stronger online presence is key to boosting competitiveness, and steps have already been taken by several market players. While Myer has faced lower physical retail sales, it has seen a positive trajectory in its online sales. Moreover, in December 2024, David Jones launched its mobile app as a first step in its 65-million-dollar technological transformation strategy to strengthen its web traffic and keep pace with its discount and online marketplace competitors.
Nonetheless, Australia’s department stores face a tough road ahead, confronted with navigating the ever-growing sea of retailers and adapting to digital acceleration.
Discount department stores pull ahead of luxury
Across Australia’s leading department store chains, discount chain Kmart, operating under conglomerate Wesfarmers, dominates in terms of its revenue, store network, and web traffic. In the 2024 financial year, Kmart’s revenue reached a five-year peak, facilitated by sales through its website and over 300 stores nationwide. BIG W, the country’s second-largest department store market player, owned by retail giant Woolworths Group, had a more challenging year. The company saw a dip in revenue, yet its BIG W retail network remained stable. Alongside these two prominent players, Target, also belonging to Wesfarmers, and Harris Scarfe are other popular discount chains.Mid-range and upscale department store brands Myer and David Jones also make their mark, but struggle compared to their discount counterparts. Their discount counterparts likely fare better due to their lower prices, reaching closer parity to their online marketplace rivals. Category-specific retailers have also eaten away at department stores’ previously higher success in certain categories like sporting goods, recreational equipment, and beauty products. Alongside this, online shifts in several consumer goods segments, including the rise of e-books and online print book purchases, have also hit department stores hard.
Keeping pace with the online marketplace boom
Historically, Australia’s department stores witnessed their strongest performance in November, coinciding with the Black Friday and Cyber Monday sales in the run-up to Christmas. However, over the past few years, this trend has started to plateau. According to a 2024 survey, online marketplaces, such as Amazon and eBay, have overtaken luxury and discount department stores as the preferred retail format for Australian shoppers intending to buy Christmas gifts.While Kmart stands strong, likely due to its switch in strategy to become the answer to affordable dupes of luxury items, in the coming years, Australia’s department stores will have to work hard to turn around their diminishing prominence. Building a stronger online presence is key to boosting competitiveness, and steps have already been taken by several market players. While Myer has faced lower physical retail sales, it has seen a positive trajectory in its online sales. Moreover, in December 2024, David Jones launched its mobile app as a first step in its 65-million-dollar technological transformation strategy to strengthen its web traffic and keep pace with its discount and online marketplace competitors.
Nonetheless, Australia’s department stores face a tough road ahead, confronted with navigating the ever-growing sea of retailers and adapting to digital acceleration.
