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Department Stores in Australia - Market Research Report (2013-2028)

Kayla Wheeler Kayla Wheeler Melbourne, Australia Last Updated: August 2023 ANZSIC G4260

Revenue

$21.9bn

2023-24

$21.9bn

Past 5-Year Growth

Profit

$X.Xbn

Employees

98,138

Businesses

209

Wages

$X.Xbn

Department Stores in Australia industry analysis

Department stores have long been a magnet for foot traffic and tourists, which is why the COVID-19 pandemic has disrupted retailers. Even before the outbreak, instore patronage was drying up, with wavering consumer sentiment and discretionary income pivoting spending towards lower-priced online sellers. Rising internet connections and rolling lockdowns have propelled online shopping activity and industry competition. But these headwinds have yielded some positive results, like a push to revise thwarting legacy systems and strategies and become more digital-led retailers. Industry revenue has modestly contracted by an annualised 0.3% in the past five years through 2023-24, to $21.9 billion. This trend also includes a 5.6% downturn in revenue over the current year. Despite a bounce-back in tourism, cost-of-living pressures are poised to intensify, encouraging consumers to cut back on discretionary spending.

Trends and Insights

  • The rise of online shopping is causing headwinds for department stores as rivalry from online-only retailers has ramped up. Simultaneously prompting overdue strategy turnarounds among the industry’s heavyweights.
  • Specialty retailers are loosening the authority department stores have held on discretionary goods. They’ve been notable for expanding and improving their lines of cosmetics/toiletries, household appliances and consumer electronics, as well as enhancing their customer service.
  • City centres and Shopping centre complexes offer department stores a competitive advantage. These locations provide extensive foot traffic and brand prominence.
  • Industry heavyweights like The Kmart Group occupy the bulk of industry demand. This is because their size and scope give them an advantage in an ever-more competitive environment.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2013-2028)

Industry revenue has declined at a CAGR of 0.3 % over the past five years, to reach an estimated $21.9bn in 2023.

Trends and Insights

The COVID-19 pandemic-driven online shopping boom has offered retailers a bright spot

  • Department stores are magnets for foot traffic, a trend that upholds their sales and customer engagement. Rolling lockdowns and mandated store closures adversely affected retailers' revenue streams.
  • Additional trends and insights available with purchase
Department Stores in Australia
Revenue (2013-2028)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to decline over the next five years.

Trends and Insights

The penetration of fast-fashion global giants will intensify competition

  • The pandemic has ever more changed consumer behaviour, with digital consumption set to stay. This factor will elevate competitive pressures from domestic and international sellers.

Biggest companies in the Department Stores in Australia

Company
Market Share (%)
2024
Revenue ($m)
2024
Wesfarmers
11,107.0
Woolworths
4,690.0
Myer Holdings
2,438.1

To view the market share and analysis for all 5 top companies in this industry, view purchase options.

Products & Services Segmentation

Department Stores in Australia
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Clothing, footwear and accessories, Furniture, housewares and textile goods and Household appliances and consumer electronics. Clothing, footwear and accessories is the largest segment of the Department Stores in Australia.

Trends and Insights

Falling consumer optimism has cut short revenue generated from clothing, footwear and accessories

  • This segment comprises women's, men's and children's clothing; sleepwear; lingerie; personal accessories like hats, jewellery and handbags; and shoes.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Department stores retail fabrics, soft goods, clothing, chinaware, glassware, housewares, perfumes, cosmetics, toiletries, furniture and household appliances. Goods are normally sold through separate instore departments. Department stores purchase products from wholesalers and manufacturers and onsell them to consumers. They also undertake activities including customer service, product merchandising, advertising, inventory control and cash handling.

What's included in this industry?

Clothing, footwear and accessoriesFurniture, housewares and textile goodsHousehold appliances and consumer electronicsCosmetics and toiletriesRecreational equipmentBooks, magazines and other printed material

Companies

WesfarmersWoolworthsMyer Holdings

Purchase this report to view all 5 major companies in this industry.

Related Terms

ECOMMERCERADIO FREQUENCY IDENTIFICATION (RFID)WHOLESALE BYPASS

Industry Code

ANZSIC 2006

ANZSIC 4260 - Department Stores in Australia

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

The rise of online shopping is causing headwinds for department stores as rivalry from online-only retailers has ramped up. Simultaneously prompting overdue strategy turnarou...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2013-2022) and forecast (2023-2028)
  • Employees, including historical (2013-2022) and forecast (2023-2028)
  • Businesses, including historical (2013-2022) and forecast (2023-2028)
  • Profit, including historical (2013-2023)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Specialty retailers are loosening the authority department stores have held on discretionary goods. They’ve been notable for expanding and improving their lines of cosmetics/...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2023
  • Product innovation level

Charts

  • Products & services segmentation in 2023
  • Major market segmentation in 2023

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

City centres and Shopping centre complexes offer department stores a competitive advantage. These locations provide extensive foot traffic and brand prominence.

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2023

Tables

  • Number and share of establishments in each region in 2023
  • Number and share of revenue each region accounts for in 2023
  • Number and share of wages each region accounts for in 2023
  • Number and share of employees in each region in 2023

Detailed analysis

  • Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Industry heavyweights like The Kmart Group occupy the bulk of industry demand. This is because their size and scope give them an advantage in an ever-more competitive environ...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2018-2023
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Large players rule the industry with market share majority and brand recognition, creating challenging conditions for smaller competitors. Industry heavyweights have been rat...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2019 through 2023
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2023
  • Overview of Wesfarmers's performance by revenue, market share and profit margin from 2017 through 2023
  • Overview of Woolworths's performance by revenue, market share and profit margin from 2017 through 2023
  • Overview of Myer Holdings's performance by revenue, market share and profit margin from 2017 through 2023
  • Overview of revenue, market share and profit margin trend for 2 additional companies

Detailed analysis

  • Description and key data for Wesfarmers, and factors influencing its performance in the industry
  • Description and key data for Woolworths, and factors influencing its performance in the industry
  • Description and key data for Myer Holdings, and factors influencing its performance in the industry
  • Description, key data and performance trends for 2 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Department stores in Australia are subject to regulations set by the General Retail Industry Award regarding employment conditions and the Fair Work Commission regarding penal...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2013-2028) 
  • Assistance historical data and forecast (2013-2028) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Department store cost structures are influenced by operation size and product type. The industry's cost structure mirrors the average across all companies, with the top four ...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2013-2028)
  • Revenue per Employee (2013-2028)
  • Revenue per Enterprise (2013-2028)
  • Employees per Establishment (2013-2028)
  • Employees per Enterprise (2013-2028)
  • Average Wage (2013-2028)
  • Wages/Revenue (2013-2028)
  • Establishments per Enterprise (2013-2028)
  • IVA/Revenue (2013-2028)
  • Imports/Demand (2013-2028)
  • Exports/Revenue (2013-2028)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2013-2028)
  • IVA (2013-2028)
  • Establishments (2013-2028)
  • Enterprises (2013-2028)
  • Employment (2013-2028)
  • Exports (2013-2028)
  • Imports (2013-2028)
  • Wages (2013-2028)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Department Stores industry in Australia in 2024?

The market size of the Department Stores industry in Australia is $21.9bn in 2024.

How many businesses are there in the Department Stores in Australia industry in 2023?

There are 209 businesses in the Department Stores industry in Australia, which has grown at a CAGR of 7.9 % between 2018 and 2023.

Has the Department Stores industry in Australia grown or declined over the past 5 years?

The market size of the Department Stores industry in Australia has been declining at a CAGR of 0.3 % between 2018 and 2023.

What is the forecast growth of the Department Stores industry in Australia over the next 5 years?

Over the next five years, the Department Stores industry in Australia is expected to decline.

What are the biggest companies in the Department Stores market in Australia?

The biggest companies operating in the Department Stores market in Australia are Wesfarmers, Woolworths and Myer Holdings

What does the Department Stores in Australia include?

Clothing, footwear and accessories and Furniture, housewares and textile goods are part of the Department Stores industry.

Which companies have the highest market share in the Department Stores in Australia?

The company holding the most market share in Australia is Wesfarmers.

How competitive is the Department Stores industry in Australia?

The level of competition is high and increasing in the Department Stores industry in Australia.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • Clothing Retailing in Australia
  • Footwear Retailing in Australia
  • Furniture Retailing in Australia
  • Toy and Game Retailing in Australia
  • Computer and Software Retailing in Australia
  • Domestic Appliance Retailing in Australia
  • Houseware Retailing in Australia
  • Cosmetic and Toiletry Retailing in Australia

Complementors

  • There are no industries to display.

International industries

  • Warehouse Clubs & Supercenters in the US
  • Department Stores in Canada
  • Warehouse Clubs & Supercentres in Canada
  • Department Stores in New Zealand
  • Department Stores in the UK

View all industries in Australia

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Australia include:

  • Australian Bureau of Statistics
  • Australian Taxation Office
  • Australian Securities & Investments Commission

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.