Executive Summary

Apr 2019
PROSPECTS
Department stores face significant headwinds

The outlook for department stores in Australia is poor, with current value sales and outlet numbers projected to decline throughout the forecast period. This channel is particularly exposed to several trends causing significant disruption across the wider retailing market.

Leading players pursue ambitious turnaround plans

International experience shows reinvention is possible for department stores, and Australian operators are attempting to absorb the lessons of overseas counterparts. For example, taking inspiration from the UK-based Marks & Spencer, during the review period David Jones began opening new gourmet-oriented “food halls” in its flagship stores to increase footfall.

“Store mascot” strategies evolve as competitive pressures intensify

Myer and David Jones have long employed local celebrities as “store mascots” – essentially brand ambassadors – and this area has traditionally been a notable point of competition between the two chains. However, in 2018 Myer announced it was retiring the high-profile “Face of Myer” role.

COMPETITIVE LANDSCAPE
Myer focuses on putting customers first to revive fortunes

Myer remained the leading chain in department stores in value terms in 2018. While its value share was unchanged on 2017, this was an improvement on the substantial declines recorded earlier in the review period.

David Jones tops Myer in battle for exclusive brand partnerships

As they attempt to create new points of difference from direct challengers and resist competition from other types of retailers, securing exclusive partnerships with well-known brands has recently become a priority for leading department stores. While 2018 saw Myer sign an agreement with luxury skincare brand Aesop, this was eclipsed by David Jones’s announcement of exclusive deals with global fashion powerhouses Louis Vuitton, Chanel and Gucci.

Curation of exclusive ranges may be hampered by brand equity and profit concerns

With Amazon now present in Australia, the pressure on department stores to improve their online offers will only intensify over the forecast period. Moreover, efforts by leading chains to cultivate more exclusive assortments could be undermined by the fact that Amazon now has strong global relationships with several high-end brand names.

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Overview

Discover the latest market trends and uncover sources of future market growth for the Department Stores industry in Australia with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Department Stores industry in Australia, our research will save you time and money while empowering you to make informed, profitable decisions.

The Department Stores in Australia market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed market shares for international and locally-based retailers
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth  
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as: 

  • How are Department Stores performing in Australia?
  • Are consumers switching towards more convenient Department Stores ?
  • Are independent and family runDepartment Stores coming under pressure in Australia?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our 

Retailing market research database

Department Stores in Australia - Category analysis

HEADLINES

PROSPECTS

Department stores face significant headwinds
Leading players pursue ambitious turnaround plans
“Store mascot” strategies evolve as competitive pressures intensify

COMPETITIVE LANDSCAPE

Myer focuses on putting customers first to revive fortunes
David Jones tops Myer in battle for exclusive brand partnerships
Curation of exclusive ranges may be hampered by brand equity and profit concerns

CHANNEL DATA

Table 1 Department Stores: Value Sales, Outlets and Selling Space 2013-2018
Table 2 Department Stores: Value Sales, Outlets and Selling Space: % Growth 2013-2018
Table 3 Department Stores GBO Company Shares: % Value 2014-2018
Table 4 Department Stores GBN Brand Shares: % Value 2015-2018
Table 5 Department Stores LBN Brand Shares: Outlets 2015-2018
Table 6 Department Stores LBN Brand Shares: Selling Space 2015-2018
Table 7 Department Stores Forecasts: Value Sales, Outlets and Selling Space 2018-2023
Table 8 Department Stores Forecasts: Value Sales, Outlets and Selling Space: % Growth 2018-2023

Retailing in Australia - Industry Overview

EXECUTIVE SUMMARY

Economic uncertainty results in muted retailing performance in 2018
Changing consumer behaviour threatens viability of big box formats
Even iconic brands struggle as competitive pressures intensify
Online sales events create opportunities and challenges for store-based retailers
Coles set to invest heavily in strengthening its online business

OPERATING ENVIRONMENT

Informal retailing
Opening hours
Summary 1 Standard Opening Hours by Channel Type
Physical retail landscape
Cash and carry
Seasonality
Christmas
End of Financial Year sales (or mid-year sales)
Payments and delivery
Emerging business models

MARKET DATA

Table 9 Sales in Retailing by Store-based vs Non-Store: Value 2013-2018
Table 10 Sales in Retailing by Store-based vs Non-Store: % Value Growth 2013-2018
Table 11 Sales in Store-based Retailing by Channel: Value 2013-2018
Table 12 Sales in Store-based Retailing by Channel: % Value Growth 2013-2018
Table 13 Store-based Retailing Outlets by Channel: Units 2013-2018
Table 14 Store-based Retailing Outlets by Channel: % Unit Growth 2013-2018
Table 15 Sales in Non-Store Retailing by Channel: Value 2013-2018
Table 16 Sales in Non-Store Retailing by Channel: % Value Growth 2013-2018
Table 17 Grocery Retailers: Value Sales, Outlets and Selling Space 2013-2018
Table 18 Grocery Retailers: Value Sales, Outlets and Selling Space: % Growth 2013-2018
Table 19 Sales in Grocery Retailers by Channel: Value 2013-2018
Table 20 Sales in Grocery Retailers by Channel: % Value Growth 2013-2018
Table 21 Grocery Retailers Outlets by Channel: Units 2013-2018
Table 22 Grocery Retailers Outlets by Channel: % Unit Growth 2013-2018
Table 23 Non-Grocery Specialists: Value Sales, Outlets and Selling Space 2013-2018
Table 24 Non-Grocery Specialists: Value Sales, Outlets and Selling Space: % Growth 2013-2018
Table 25 Sales in Non-Grocery Specialists by Channel: Value 2013-2018
Table 26 Sales in Non-Grocery Specialists by Channel: % Value Growth 2013-2018
Table 27 Non-Grocery Specialists Outlets by Channel: Units 2013-2018
Table 28 Non-Grocery Specialists Outlets by Channel: % Unit Growth 2013-2018
Table 29 Mixed Retailers: Value Sales, Outlets and Selling Space 2013-2018
Table 30 Mixed Retailers: Value Sales, Outlets and Selling Space: % Growth 2013-2018
Table 31 Sales in Mixed Retailers by Channel: Value 2013-2018
Table 32 Sales in Mixed Retailers by Channel: % Value Growth 2013-2018
Table 33 Mixed Retailers Outlets by Channel: Units 2013-2018
Table 34 Mixed Retailers Outlets by Channel: % Unit Growth 2013-2018
Table 35 Retailing GBO Company Shares: % Value 2014-2018
Table 36 Retailing GBN Brand Shares: % Value 2015-2018
Table 37 Store-based Retailing GBO Company Shares: % Value 2014-2018
Table 38 Store-based Retailing GBN Brand Shares: % Value 2015-2018
Table 39 Store-based Retailing LBN Brand Shares: Outlets 2015-2018
Table 40 Non-Store Retailing GBO Company Shares: % Value 2014-2018
Table 41 Non-Store Retailing GBN Brand Shares: % Value 2015-2018
Table 42 Grocery Retailers GBO Company Shares: % Value 2014-2018
Table 43 Grocery Retailers GBN Brand Shares: % Value 2015-2018
Table 44 Grocery Retailers LBN Brand Shares: Outlets 2015-2018
Table 45 Grocery Retailers LBN Brand Shares: Selling Space 2015-2018
Table 46 Non-Grocery Specialists GBO Company Shares: % Value 2014-2018
Table 47 Non-Grocery Specialists GBN Brand Shares: % Value 2015-2018
Table 48 Non-Grocery Specialists LBN Brand Shares: Outlets 2015-2018
Table 49 Non-Grocery Specialists LBN Brand Shares: Selling Space 2015-2018
Table 50 Mixed Retailers GBO Company Shares: % Value 2014-2018
Table 51 Mixed Retailers GBN Brand Shares: % Value 2015-2018
Table 52 Mixed Retailers LBN Brand Shares: Outlets 2015-2018
Table 53 Mixed Retailers LBN Brand Shares: Selling Space 2015-2018
Table 54 Forecast Sales in Retailing by Store-based vs Non-Store: Value 2018-2023
Table 55 Forecast Sales in Retailing by Store-based vs Non-Store: % Value Growth 2018-2023
Table 56 Forecast Sales in Store-based Retailing by Channel: Value 2018-2023
Table 57 Forecast Sales in Store-based Retailing by Channel: % Value Growth 2018-2023
Table 58 Forecast Store-based Retailing Outlets by Channel: Units 2018-2023
Table 59 Forecast Store-Based Retailing Outlets by Channel: % Unit Growth 2018-2023
Table 60 Forecast Sales in Non-Store Retailing by Channel: Value 2018-2023
Table 61 Forecast Sales in Non-Store Retailing by Channel: % Value Growth 2018-2023
Table 62 Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space 2018-2023
Table 63 Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2018-2023
Table 64 Forecast Sales in Grocery Retailers by Channel: Value 2018-2023
Table 65 Forecast Sales in Grocery Retailers by Channel: % Value Growth 2018-2023
Table 66 Forecast Grocery Retailers Outlets by Channel: Units 2018-2023
Table 67 Forecast Grocery Retailers Outlets by Channel: % Unit Growth 2018-2023
Table 68 Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling Space 2018-2023
Table 69 Non-Grocery Specialists Forecasts: Value Sales, Outlets and Selling Space: % Growth 2018-2023
Table 70 Forecast Sales in Non-Grocery Specialists by Channel: Value 2018-2023
Table 71 Forecast Sales in Non-Grocery Specialists by Channel: % Value Growth 2018-2023
Table 72 Forecast Non-Grocery Specialists Outlets by Channel: Units 2018-2023
Table 73 Forecast Non-Grocery Specialists Outlets by Channel: % Unit Growth 2018-2023
Table 74 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space 2018-2023
Table 75 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2018-2023
Table 76 Forecast Sales in Mixed Retailers by Channel: Value 2018-2023
Table 77 Forecast Sales in Mixed Retailers by Channel: % Value Growth 2018-2023
Table 78 Forecast Mixed Retailers Outlets by Channel: Units 2018-2023
Table 79 Forecast Mixed Retailers Outlets by Channel: % Unit Growth 2018-2023

DEFINITIONS

SOURCES

Summary 2 Research Sources