Australia’s department stores generated a monthly retail revenue of approximately 1.94 billion Australian dollars in May 2025, marking an increase from the previous month. The country’s department store sector seems to be showing signs of recovery after its monthly turnover hit a significant low at the peak of the COVID-19 outbreak in Australia. Which department store chains operate in Australia? Across Australia's leading department store chains, discount chain Kmart has established itself as the dominant player, with over 300 locations nationwide. This extensive presence surpasses its main competitor, BIG W, which operates around 180 stores. In third place, Kmart's sister company, Target Australia, had almost 125 locations. Kmart's strong market position is further evidenced by its impressive financial performance, with revenue exceeding nine billion Australian dollars in the 2024 financial year. Kmart's success highlights the continued demand for affordable retail options in the Australian market, with mid-range and luxury department stores such as Myer and David Jones struggling in comparison. Keeping up with digital transformation The COVID-19 pandemic accelerated the shift towards online shopping, with department stores starting to adapt to changing consumer behaviors as their market share is increasingly challenged by online retailers and marketplaces. In February 2025, kmart.com.au recorded over 20.5 million visits, the highest among popular department store websites in Australia. BIG W's online platform also performed well, attracting almost 14.9 million site visits.

Market Size statistics on the Department Stores industry in Australia

Discount department stores have battled for consumer shopping dollars. The early phase of the COVID-19 pandemic gave stores like Kmart a temporary lift, with strong demand for home, active and kids' products, as Australians spent more time at home. However, pandemic-related shutdowns, reduced trading days and supply disruptions quickly eroded gains. Following the initial rebound when stores returned to normal operations, intensifying cost-of-living pressures struck down sales once again. Even so, the industry responded with aggressive pricing and an expanding private-label range, determined to capture increasingly value-conscious consumers. Overall, industry revenue is expected to contract at an annualised 1.1% over the five years through 2025-26 to $17.8 billion. This includes an anticipated upswing of 1.3% in the current year owing to improving economic conditions. Volatility has defined the discount department store market over the past five years. While the pandemic prompted store network consolidation, including Target reformats and Big W closures, the major brands – Kmart, Target and Big W – have solidified their market dominance, increasing the barriers for smaller retailers. Digital competition from ecommerce giants like Amazon and Kogan has also forced the market to ramp up investment in omnichannel experiences and loyalty programs. While smaller retailers have struggled to keep up, larger chains have become more agile and efficient, leveraging their scale to negotiate better terms of trade, invest in logistics and further squeeze competitors via permanent price drops and streamlined operations. Going forwards, easing inflationary pressure and forecast interest rate cuts are set to restore some consumer purchasing power, boosting discretionary spending and confidence. ABS data already shows department store sales growth trending upwards, and major retailers are betting big on omnichannel investments, like Kmart’s new fulfilment centre and innovative store formats targeting younger demographics. However, competition will remain fierce, especially from online titans, and ongoing price wars will pressure both margins and market share. Smaller discount department stores are likely to face further consolidation, shrinking market size and employment. Still, for the big brands able to drive costs down and respond quickly to evolving consumer preferences, profitability is poised to strengthen, setting the stage for renewed growth in the years ahead. Overall industry revenue is on track to climb at an annualised 1.3% over the five years through 2030-31 to reach $19.0 billion.

In 2024, Australia’s department store retail revenue amounted to approximately 22.85 billion Australian dollars, marking a slight increase from the previous year. Nonetheless, over the past decade, the country’s annual department store turnover has remained relatively stagnant. Kmart: Australia’s leading department store Across Australia’s major department store chains, Wesfarmers-owned Kmart stands out as a dominant force. With over 300 locations nationwide, Kmart boasts the largest physical presence among the country’s department store chains. Alongside its substantial store network, the company has witnessed strong financial performance, with an annual revenue exceeding nine billion Australian dollars in the 2024 financial year. This success is mirrored in the digital sphere, where kmart.com.au recorded the highest web traffic across popular department store websites in Australia. While Kmart thrives, several of its rivals, including BIG W, Myer, and David Jones, as well as sister company Target Australia, have seen plateauing or declining sales. Department stores: will they evolve and keep up? While department stores are a long-standing staple of Australia’s retail sector, the shopping format has increasingly faced competition from online retailers and marketplaces, such as Amazon, eBay, and Temu, as well as specialty retailers. In the age of e-commerce, traditional retail formats like department stores have had to quickly adjust and expand their online presence to keep up. Australia’s department stores are starting to adapt, with luxury brand David Jones launching its mobile app in December 2024 as a part of its 65-million-dollar technological transformation plan to strengthen its online footprint. Nonetheless, with more retailers entering the physical and online retail landscape, the once unique shopping experience offered by department stores has become increasingly challenged.

The Australia department stores market size is projected to grow at a CAGR of 4.60% between 2025 and 2034.

Number of Businesses statistics on the Discount Department Stores industry in Australia

Australia Retail Market is Segmented by Product Category (Food and Beverage, Personal and Household Care, and More), by Retail Format (Supermarkets and Hypermarkets, Convenience Stores, and More), by Distribution Channel (Offline Retailing, Online Retailing, and More), by Payment Mode (Cards and EFTPOS, and More), and by State (New South Wales, Victoria, and More). The Market Forecasts are Provided in Terms of Value (USD).

This report is the result of Conlumino’s extensive market research covering Australia Department Stores. It provides detailed historic and forecast sales value of the market at channel level. "Department Stores in Australia: Market Snapshot to 2019" provides a top-level overview and detailed insight into the operating environment of Australia retail industry. It is an essential tool for companies active across Australia retail value chain and for new players considering entering the market. Read More

Employment statistics on the Department Stores industry in Australia

Australian Retail Market size was valued at USD 245 Billion in 2024 and is projected to reach USD 375 Billion by 2032, growing at a CAGR of 4.2% from 2025 to 2032.

Australian Retail Market: Definition/Overview

The Australian retail market is defined as the sector encompassing all business-to-consumer (B2C) sales of goods and services through various channels including physical stores, online platforms, and omnichannel retail formats. The market structure is characterized by a mix of large retail chains, independent retailers, and emerging digital platforms.

Furthermore, the retail landscape is shaped by factors such as urbanization, digital transformation, and changing consumer behavior patterns. The integration of technologies such as artificial intelligence, data analytics, and automated checkout systems is implemented to enhance customer experience.

Retail Sales: Western Australia: Department Stores data was reported at 200.300 AUD mn in Mar 2025. This records an increase from the previous number of 172.300 AUD mn for Feb 2025. Retail Sales: Western Australia: Department Stores data is updated monthly, averaging 125.850 AUD mn from Apr 1982 (Median) to Mar 2025, with 516 observations. The data reached an all-time high of 378.400 AUD mn in Dec 2024 and a record low of 33.200 AUD mn in Feb 1983. Retail Sales: Western Australia: Department Stores data remains active status in CEIC and is reported by Australian Bureau of Statistics. The data is categorized under Global Database’s Australia – Table AU.H014: Retail Sales: ANZSIC 2006: by Industry and State. [COVID-19-IMPACT]

Australia's online retail spending rose across all segments for both domestic and international merchants in February 2025 compared to the year prior. In the grocery and liquor category, online retail expenditure to domestic merchants increased by around *** percent compared to the previous year. In comparison, international merchants in this category experienced a rise of **** percent. Leading online retailers and marketplaces As of 2024, Amazon and eBay were the top online retailers and marketplaces across Australia, with more than ** percent of online shoppers purchasing from Amazon and over ** percent from eBay that year. Both websites attract millions of monthly site visits, with eBay at around **** million visits per month as of February 2025. Australia’s supermarket giants, Woolworths and Coles, were also among the top online stores purchased from across the country, with Woolworths Group holding the largest share of Australia’s grocery retail market. Discount department stores Kmart and BIG W were also among the leading online retailers; nonetheless, department store chains have started to lose ground to online marketplaces such as Amazon, eBay, and Temu. Unsurprisingly, books and e-books were Amazon Australia’s most popular purchase categories, largely due to the popularity of Kindle and Audible, as well as the site often offering paperback books at lower prices compared to chain or independent bookstores. Online retail trends In 2020 and 2021, widespread restrictions to in-store shopping across Australia resulting from the COVID-19 pandemic drove many consumers to online shopping channels. Consequently, the country’s e-commerce market boomed during that period, with e-commerce growing by over **** percent in 2020 and 2021. Market growth slowed somewhat in 2022; nevertheless, long-lasting changes to consumer behavior are noticeable, with many shoppers engaging in omnichannel shopping activities. Shopping smart is becoming essential in current times, as inflation affects household disposable income, with consumers increasingly conducting in-depth research before purchasing, shopping during sales periods, bulk buying, and purchasing items, such as birthday or Christmas gifts, in advance. Furthermore, in recent years, product sustainability has come into greater focus across Australia, with many online shoppers preferring to purchase from ethical and sustainable brands.

Times have been tough for discount variety stores. Mounting external competition from discount department stores, supermarkets and online-only retailers has strained discount variety stores’ revenue. These retail giants not only offer a diverse selection of quality goods but also leverage loyalty reward schemes to entice consumers, which narrows the gap between them and traditional discount variety stores. Even so, the industry’s profitability has recently climbed on the back of a changing product mix. Overall, revenue is expected to have dropped at an annualised 2.6% over the five years through 2024-25, to $2.3 billion. This trend includes an anticipated 1.6% uptick in 2024-25. Discount variety stores have navigated challenging terrain marked by intensified competition from growing supermarket and department store chains and online retailers. The expansion of global giants like Costco has generated significant pressure. Online shopping has emerged as a formidable competitor, attracting customers with niche products and minimal shipping fees. To counter this, traditional discount variety stores have enhanced their online platforms, an effort that has been somewhat successful in maintaining competitiveness. Industry revenue is forecast to edge upwards at an annualised 1.5% over the five years through 2029-30, to $2.4 billion. The continued push for online shopping is poised to erode bricks-and-mortar discount variety stores’ customer base, aligning with consumers’ preferences for seamless online shopping experiences. Superstores like Aldi and Costco, backed by powerful buying capabilities and appealing product ranges, will likely expand and claim further market share. Discount department stores like Kmart will also continue to capture consumers, fuelling competition.

Retail Sales: South Australia: Department Stores data was reported at 122.600 AUD mn in Mar 2025. This records an increase from the previous number of 102.000 AUD mn for Feb 2025. Retail Sales: South Australia: Department Stores data is updated monthly, averaging 98.350 AUD mn from Apr 1982 (Median) to Mar 2025, with 516 observations. The data reached an all-time high of 229.700 AUD mn in Dec 2008 and a record low of 39.700 AUD mn in Feb 1983. Retail Sales: South Australia: Department Stores data remains active status in CEIC and is reported by Australian Bureau of Statistics. The data is categorized under Global Database’s Australia – Table AU.H014: Retail Sales: ANZSIC 2006: by Industry and State. [COVID-19-IMPACT]

Retail turnover in Australia has seen a continued year-on-year increase since 2005. In 2024, total retail revenue in the country was approximately 436.76 billion Australian dollars, an increase of over 10 billion Australian dollars from the previous year. Australia's key retail segments The Australian food retail industry saw steady year-on-year growth over the same period, with annual food retail turnover reaching over 173 billion Australian dollars in 2024. The country's second-largest retail segment, household goods, also showed overall strong performance, recognizing annual revenue of approximately 70.4 billion Australian dollars that same year. Department stores remain the smallest segment of the country's retail industry, with the annual revenue of department stores showing slow growth compared to other segments. The online retail boom Accelerated by the COVID-19 pandemic, online shopping plays a major part in the everyday lives of consumers across Australia. Predominantly, Australians spend the most online on online marketplace goods and homewares. In 2025, products in the homeware and appliances category accounted for 19.1 percent of all online spending, and groceries and liquor for almost 15 percent. Amazon was the leading online retailer purchased from among online shoppers in Australia in the 12 months to July 2024, followed by eBay, Kmart, and Woolworths.

Australia's online retail spending rose across all segments for both domestic and international merchants in February 2025 compared to the year prior. In the grocery and liquor category, online retail expenditure to domestic merchants increased by around 9.5 percent compared to the previous year. In comparison, international merchants in this category experienced a rise of 18.8 percent. Leading online retailers and marketplaces As of 2024, Amazon and eBay were the top online retailers and marketplaces across Australia, with more than 50 percent of online shoppers purchasing from Amazon and over 40 percent from eBay that year. Both websites attract millions of monthly site visits, with eBay at around 37.3 million visits per month as of February 2025. Australia’s supermarket giants, Woolworths and Coles, were also among the top online stores purchased from across the country, with Woolworths Group holding the largest share of Australia’s grocery retail market. Discount department stores Kmart and BIG W were also among the leading online retailers; nonetheless, department store chains have started to lose ground to online marketplaces such as Amazon, eBay, and Temu. Unsurprisingly, books and e-books were Amazon Australia’s most popular purchase categories, largely due to the popularity of Kindle and Audible, as well as the site often offering paperback books at lower prices compared to chain or independent bookstores. Online retail trends In 2020 and 2021, widespread restrictions to in-store shopping across Australia resulting from the COVID-19 pandemic drove many consumers to online shopping channels. Consequently, the country’s e-commerce market boomed during that period, with e-commerce growing by over 33.9 percent in 2020 and 2021. Market growth slowed somewhat in 2022; nevertheless, long-lasting changes to consumer behavior are noticeable, with many shoppers engaging in omnichannel shopping activities. Shopping smart is becoming essential in current times, as inflation affects household disposable income, with consumers increasingly conducting in-depth research before purchasing, shopping during sales periods, bulk buying, and purchasing items, such as birthday or Christmas gifts, in advance. Furthermore, in recent years, product sustainability has come into greater focus across Australia, with many online shoppers preferring to purchase from ethical and sustainable brands.

The Australian retail industry has witnessed steady growth, exhibiting a market size of XX million in 2025 and a promising CAGR of 5.00% over the forecast period. Key drivers propelling this growth include rising disposable income, rapid urbanization, and an evolving consumer landscape. The industry's segments encompass product categories ranging from food and beverages to electronics, while distribution channels include supermarkets, specialty stores, online platforms, and others. Major industry players include Aldi Group, Metcash Ltd, Woolworths Group Ltd, Wesfarmers Ltd, and JB Hi-Fi Ltd. These companies drive innovation and competition, adapting to consumer trends and enhancing customer experiences. While online retail has gained significant traction, brick-and-mortar stores continue to hold a strong presence, offering personalized experiences and convenience. The industry also faces challenges such as supply chain disruptions, labor shortages, and increased consumer price sensitivity. Despite these restraints, the Australian retail industry remains resilient and poised for further expansion, driven by ongoing urbanization, technological advancements, and evolving consumer preferences. Recent developments include: In November 2020, Wesfarmers retail businesses continued to expand their business. Kmart opened new stores in Camberwell and Casey in Victoria and Cockburn in Western Australia, all converted from Target stores, alongside its newest K Hub store in Bairnsdale in regional Victoria.. Notable trends are: Demand for Food and Beverages Continues to be Strong Despite the COVID-19 Challenges.

Employment statistics on the Discount Department Stores industry in Australia

Australia Retail Sales: Trend: Department Stores data was reported at 1,955.500 AUD mn in Mar 2025. This records an increase from the previous number of 1,947.100 AUD mn for Feb 2025. Australia Retail Sales: Trend: Department Stores data is updated monthly, averaging 1,202.550 AUD mn from Apr 1982 (Median) to Mar 2025, with 488 observations. The data reached an all-time high of 1,955.500 AUD mn in Mar 2025 and a record low of 483.100 AUD mn in Apr 1982. Australia Retail Sales: Trend: Department Stores data remains active status in CEIC and is reported by Australian Bureau of Statistics. The data is categorized under Global Database’s Australia – Table AU.H016: Retail Sales: ANZSIC 2006: by Industry and State: Trend.

In 2015, the retail e-commerce share of all retail sales in Australia was *** percent. By 2019, this share was forecasted to increase to *** percent. In 2018, the digital buyer penetration was forecasted to reach ** percent, continuing a year-on-year increase from 2013. Consumers aged between ** to ** are the most active in the e-commerce market in the country.

E-commerce market

The net e-commerce sales of Woolworths topped the online B2C market in Australia in 2018. Coles, another Australian supermarket chain, trailed behind with the second highest online sales. Both Coles and Woolworth shoppers were equally willing to buy groceries online in this year. In terms of the electronics and media segment, Apple led the pack with net online sales amounting to almost *** million U.S. dollars.

Market growth

In 2017, domestic media retailers experienced the largest growth, over ** percent, for retail e-commerce sales in Australia. The number of Amazon sellers in Australia had increased over four-fold from the beginning of 2018 to August of the same year. For international retailers, department stores had the highest online sales growth. Online stores such as ASOS and The Iconic dominated the fashion segment in Australia in 2018, and look set to continue their growth in the future.