Australia department store retailer Myer will close two stores as it gradually scales back its footprint, while its smaller rival David Jones prepares to expand.

Myer announced on Friday that its Wollongong, New South Wales, store will close in October and its store in Orange, in NSW's central west, will close in January, putting at risk more than 100 jobs. The latest exits follow the planned closure of Myer's Brookside shopping centre store in Brisbane and will reduce the Myer footprint from 66 to 63 stores by the end of 2017.

Meanwhile, David Jones said it plans to add another 10 stores to its portfolio of 40 stores over the next five years, including moving into Myer's Wollongong Central site in late 2017 with a "new look" store. DJs already has a store in Wollongong, which will continue to operate for now. It will also open its first New Zealand store in Wellington and its first small format store in Barangaroo, Sydney, later this year.