The 25 per cent stake, announced on Tuesday, will see Topshop and Topman concession stores rolled out in 20 Myer stores nationally.

The announcement, which comes midway through Melbourne Spring Fashion Week – an event designed to promote independent Australian designers – had a mixed response from consumers.

"I like that Myer is moving into fast and affordable fashion," said Rita Johnston, 34, from Richmond. "Their lower-priced labels have been quite cheap in their look so it is good to have more options."

Others expressed disappointment the retailer was axing Australian brands in favour of internationals.

"I'd prefer Myer to support Australian brands but I understand why Topshop is attractive," said Francesca Sipton, from Malvern.

The move comes just weeks after the retailer announced it was dumping 100 fashion and homewares brands to make way for new labels in a bid to restore sales.

In July, it announced it had signed popular mainstream brands French Connection and Seed as well as Australian label Aje, and international labels Jack and Jones, Calvin Klein White Label, and Oscar de la Renta.

Retail expert Steve Ogden-Barnes, from Deakin University's School of Business, says the move is a positive one for the retailer, which on Tuesday posted a sales growth of 1.7 percent (1.1 percent on a same store basis) for the 12 months to June to $3.1 billion.

"I think the problem with Myer in recent years is that it has tried to be too many things to too many people," he said. "Of course, that has been the traditional role of a department store – to be able to offer a little bit of everything in one convenient location. The problem is online shopping now offers customers that.

"In the past Myer have probably had too many brands that didn't necessarily have traction with shoppers. The Topshop agreement along with their decision to streamline their fashion brand offering will give them a much more focused offering," he said.

"It clearly positions Myer as more accessible and distinguishes itself more clearly from David Jones. And importantly, unlike many brands, especially the brands you create yourself, Topshop has been tried and tested and they know people like it."

Myer will condense its private label brands, as part of the new strategy.

Associate professor Karen Webster, a former director of the Melbourne Fashion Festival and deputy head of school, fashion and textiles at RMIT, says the acquisition is a win-win for both retailers.

"Myer had to do something," says Webster, who argues many of the department store's problems in recent years are the result of the "homogenisation of the middle market".

"This is a brilliant move for Myer particularly because its youth brand, Miss Shop, which was really successful for Myer for many, many years has lost its way. Topshop is globally renowned and aspirational for young kids and therefore will reinvigorate that youth customer that it might have lost."

"It is also a very positive union for Topshop which will benefit greatly from some Australian intelligence. Because it can't just replicate what it's doing in other markets. I think its a very positive union."

With Jessica Wright