What: the two Australian department store chains are reducing the number of stores overall

Why it is important: rightsizing does not imply the disappearance of department stores, who are poised to reinvent themselves around their flagships as a node in their store network. 

David Jones is strategically reducing its physical store size, reacting to shifting consumer behaviors towards online shopping and targeted in-store experiences. This adjustment involves renovations in NSW and Victoria, where floors are being surrendered to landlords to optimize store operations. The retailer aims to transform these spaces into hubs that emphasize customer experience over traditional retail functions, reflecting a broader industry trend towards omnichannel commerce. In contrast, Myer, which has historically served a mid-market customer base, is also downsizing, reflecting similar challenges within the department store sector. Myer's adjustments come amid attempts to revitalize its brand and attract a younger, digitally-savvy demographic. Both David Jones and Myer are navigating an environment where consumers are increasingly drawn to either premium or value-oriented offerings, bypassing traditional mid-market options.

Australian department stores are poised to rightsizing