Department Stores in Australia - Industry Market Research Report

Department Stores in Australia - Industry Market Research Report
Department Stores in Australia

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. For this reason, industry revenue has modestly grown by an annualised 0.3% in revenue through the end of 2022-23, to $21.6 billion. This trend also includes an 8.2% upturn in revenue over the current year, resulting from post-pandemic pent-up spending - despite the cost of living challenges – and a bounce-back in tourism.

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.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.