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The Australia department stores market attained a value of USD 16.90 Billion in 2025 and is projected to expand at a CAGR of 4.70% through 2035. The market is further expected to achieve USD 26.75 Billion by 2035. Increased capabilities of retail media platforms and marketplace assortments allow department stores to capitalize on customer data, entice suppliers, widen their choice of products, and increase frequency of interaction with customers.
The Australia department stores market is seeing a significant shift in the marketplace strategy and retail media strategy of Myer. In July 2026, the online marketplace of Myer was enhanced with Mirakl that introduced 25,000 products and Myer Media Network. The platform leverages the MYER one customer data to create new supplier advertising opportunities. It comes after the creation of a strong loyalty program where the number of active customers in MYER one stands at 4.7 million, offering brands a larger addressable audience for campaigns and product discovery.
Moreover, the Australia department stores market is moving towards transforming department stores into omnichannel brand platform rather than considering floor space productivity as a key. Myer is introducing exclusive brands, international brands into the country, and beautification. All such developments offer suppliers the opportunity to merge physical merchandising, marketplace visibility, loyalty marketing, and retail-media activation via one channel.
There are two other major driving factors pushing the Australia department stores market forward. Digital assortment expansion through third-party marketplaces and growing investment into beauty-centric store remodels. Collaboration with marketplaces helps retailers to onboard new brands without corresponding inventory obligations, while high-end beauty halls and unique international launches help with the differentiation of physical stores.
Compound Annual Growth Rate
4.7%
Value in USD Billion
2026-2035
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Kmart extended the K Home range in Queensland by offering specialized services and experiences to Australian customers through home retail. Department stores may take inspiration from Kmart and offer specialized departments and home categories to capture the need for immersive retail.
Bandai Namco opened Australia's first Gundam Base and Tamashii Nations store, leveraging destination retail through unique and branded experiences. Entertainment companies may be used to offer unique products and build destination shopping experience, thereby widening the Australia department stores market scope.
Kmart opened a large-format K Home store in Box Hill, further expanding its presence in the specialty homeware retail segment. Other firms in the Australia department stores market can create such specialty concepts in large formats to build on their expertise in categories, offer better assortments and engage customers better.
Myer introduced Rihanna's Fenty Beauty brands, expanding its premium beauty portfolio and attracting consumers seeking inclusive, internationally recognized products. Department stores can secure exclusive global brand partnerships and broaden premium beauty assortments to increase footfall and customer loyalty.
Marketplace growth is emerging as an important growth engine as department stores look to increase their assortment offerings without necessarily having all the products within their inventory. In November 2025, Myer entered into a partnership with Mirakl for its next generation e-commerce strategy, boosting the overall Australia department stores market value. The partnership is expected to broaden product availability, strengthen digital capabilities, improve customer choice, and support scalable marketplace-led growth across the country.
Department stores are increasingly monetizing their customer relationships by developing retail media platforms for brand partners. Such developments in the Australia department stores market give suppliers additional routes to improve product visibility while measuring campaign performance closer to purchase decisions. The ACCC’s Consumer Data Right framework also reflects Australia’s wider regulatory focus on secure, consumer-controlled data sharing and innovation. For example, in June 2026, Suddenly launched a retail media division, partnering with BWS to expand in-store advertising and customer engagement opportunities.
The concept of premium beauty is driving department stores to invest in experiential retail formats and brand partnerships that are differentiated. Myer announced its intentions in June 2026 to refurbish its Sydney beauty hall, after implementing its wider beauty transformation strategy and launches such as FENTY BEAUTY brands, luxury skin care brands, and international beauty brands. Such investments are intended to help physical stores become more relevant when it comes to the discovery of product, consultations, samplings, and premium launches which cannot be easily replicated through an online retailing environment. For suppliers in the Australia department stores market, specialized beauty environments are helpful when it comes to demonstrating and high-end merchandising.
Exclusive partnerships are helping Australian department stores obtain products that cannot be easily replicated by their competitors. In December 2025, Myer confirmed the relaunch of TOPSHOP in Australia via exclusive in-store partnership and announced an agreement with Gap Inc. for the launch of its brand in Australia in March 2026. Such partnerships allow international brands to benefit from established store networks, digital platforms, marketing campaigns, and customer data without investing heavily in standalone retailing facilities, thereby widening the Australia department stores market scope.
The sustainability criteria are opening up new Australia department stores market opportunities for collaboration between department stores and suppliers in terms of recyclable packaging, circular products, and low-waste logistics. According to a report by the Department of Climate Change, Energy, the Environment and Water of Australia, 6.84 million tons of packaging was put into the Australian market during 2023-24, of which 41% was landfilled. The government is working towards reformed packaging regulations in line with the circular economy through industry and state collaboration. Aligning with this trend, in September 2025, Samsara Eco opened its first commercial plant, scaling circular plastics production and supporting sustainable material adoption across industries.
The Expert Market Research's report titled “Australia Department Stores Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Type
Key Insight: Apparel and accessories are dominating the Australia department stores market with their exclusive range of labels, superior fashion alliances, private brands, and significance of physical discovery of the products. The FMCG segment is ensuring frequent store visits with access to beauty products, personal care items, gift items, and other branded products used daily. The categories of hardlines and softlines are being expanded with a wide variety of home, kitchen, electrical, and lifestyle offerings, especially when the marketplaces give better supplier access.
Market Breakup by Region
Key Insight: The state of New South Wales dominates the market in terms of its retail infrastructure, premium consumer demand, tourism, and brand launch opportunities. The state of Victoria is growing with fashion-driven retail trends and an omnichannel approach. Queensland is favored by its population growth, tourist spending, and development of its retail space. The Australian Capital Territory has an advantage in the purchasing power and demand for premium retail proximity. The Western Australia department stores market has the advantage of the geographic concentration of metropolitan demand and localized assortments. Other states help through their regional store network where they offer their specialized products and fulfillment in retailing.
By type, the apparel and accessories category register the largest share of the market due to exclusive brands
Apparel and accessories comprise the key subsegment driving growth of the Australia department stores market through fashion exclusivity and luxury partnerships. Private labels are increasingly complementing international brands for retailers to have more control over assortment, pricing, and merchandising. Occasion wear, women’s apparel, footwear, handbags, and accessories are some of the categories that are significantly benefitted from try-on and discover-in-store concepts. Omni-channel support is being provided for this category through online discovery, store collection, returns, and promotions. In February 2026, Apparel Group partnered with Cotton On to launch the Australian brand in India, expanding international retail presence.
Hardline and softline categories emerge to be the rapidly growing subsegment as retailers extend their lifestyle proposition through homeware, bedding, kitchenware, electricals, and seasonals. These categories are being offered by department stores through the addition of marketplace-led assortment in which they are able to access niche suppliers without needing to carry similar merchandise within their own inventories. Overall growth in the Australia department stores market is being driven by gift purchases, home refresh activities, and consumers’ increasingly coordinated lifestyle purchasing decisions. In January 2026, Coles launched KitchenAid cookware collectables, strengthening customer loyalty through exclusive rewards, and encouraging higher repeat purchases among shoppers.
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New South Wales accounts for the leading market share due to premium retail concentration
The ongoing dominance of the New South Wales market is enabled by the presence of large-scale retail locations, affluent city dwellers, tourist traffic, and the presence of department stores. New South Wales is an excellent location for premium fashion, beauty brands, and international launches of brands. In addition, there is widespread adoption of digital technology that allows the integration of both online and brick and mortar sales efforts. In July 2026, Hermès expanded Australian retail with a second Sydney store, strengthening its luxury presence and serving growing premium consumer demand.
The Victoria region is the fastest growing regional subsegment due to fashion culture in Melbourne, premium retail landscape, and need for distinctive brand experiences. Department stores can launch international labels, unique apparel collections, beauty concept stores, and home products in this region. The Australia department stores market observes a high density of urban retailing that makes omnichannel retailing possible including click and collect as well as store fulfillment.
The market is shifting towards omnichannel, exclusivity, personalized experiences driven by loyalty, and marketplace offerings. Australia department store companies are embracing digital platforms that integrate their store inventory, third-party selling options, promotions, and fulfillment options. The company Myer is developing its marketplace and retail media offerings, which means that there are more chances for suppliers to enhance visibility of their products without obtaining shelf space through traditional means. Kmart is embracing private-label low-cost products, and Woolworths is developing digital retail ecosystems. The Harrolds Logistics Company offers support to the market through logistics services.
There are opportunities in the development of retail media, personalization via artificial intelligence, marketplace offerings, luxury beauty concepts, localized assortment, and rapid omnichannel fulfillment. Australia department stores market players with unique products and efficient inventory management are gaining more customer engagement.
Woolworths Group Limited was incorporated in 1924 and operates from Sydney, Australia. It caters to suppliers seeking efficient access to Australian customers through its extensive retail network, digital capabilities, loyalty programs, and streamlined logistics operations. The firm is making investments in automations, data driven retail and omni-channel fulfillment that provides great opportunities for suppliers to access Australian consumers.
Harrolds Logistics Pty Ltd. was incorporated in 2009 and is located in Melbourne, Victoria, Australia. It caters to department stores and fashion retail businesses through specialized warehouse, transport, and fulfillment services. The business assists brands to deal with increasingly complicated omnichannel distribution needs.
Wesfarmers Limited was founded in 1969, and is located in Victoria, Western Australia. Wesfarmers supports the market through value-led retail and broad range of private labels. Kmart focuses on designing products, direct sourcing, efficient logistics, and digital capabilities.
Myer Pty Limited was founded in 1899, and is based in Victoria, Australia. Myer Pty Limited is transforming its department store concept through marketplace expansion, retail media, loyalty data and unique brand partnerships. It allows the company to expand its digital offerings, improve fashion and beauty offerings, and provide tools for its suppliers for brick-and-click access.
Other key players in the market include David Jones Limited, among others.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Unlock the latest insights with our Australia department stores market trends 2026 report. Discover regional growth patterns, consumer preferences, and key industry players. Stay ahead of competition with trusted data and expert analysis. Download your free sample report today and drive informed decisions in the market.
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
The market is projected to grow at a CAGR of 4.70% between 2026 and 2035.
The department stores market is categorised according to type, which includes apparel and accessories, FMCG and hardline and softline.
The key players are Woolworths Group Limited, Harrolds Logistics Pty Ltd., Wesfarmers Ltd. (Kmart), Myer Pty Ltd., and David Jones Limited among others.
The market is broken down into New South Wales, Victoria, Queensland, Australian Capital Territory, Western Australia, and others.
In 2025, the market reached an approximate value of USD 16.90 Billion.
Companies are facing intense online competition, rising fulfillment costs, complex inventory management, changing discretionary spending, expensive store operations, supplier margin pressure, and maintaining differentiated assortments across channels.
Stakeholders are expanding marketplace partnerships, using first-party data, developing exclusive products, strengthening localized assortments, improving fulfillment speed, investing in retail media, and integrating physical and digital customer experiences.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Type |
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| Breakup by Region |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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