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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.