Target will introduce size 16 mannequins in over 49 stores nationwide.
The mannequins, which have been produced specifically for Target, will be first launched at its Chadstone store on September 10.
The initiative will see the introduction of at least two mannequins in each store.
Target Australia MD Stuart Machin said the decision aims to represent the diversity of women.
"The average customer is a size 14, so it’s baffling that the Australian retail industry still uses a standard size 8 mannequin when we are merchandising product.
"We want to change the way Australian retailers represent women, and we hope that these mannequins will help to start a new conversation in the fashion industry, and trigger some change."
Machin said the commitment extends to product.
"We know how important it is to be accessible for real Australians.
"We’ve always tried to cater for all sizes – from introducing our petites line with our Dannii for Target range right through to the Belle Curves collection that caters for women up to size 26.
"The real-sized mannequins will take this commitment to diversity one step further, by helping every-day women to accurately see what clothes will look like on themselves and on a body that they can identify with."
After Chadstone, Target will install the mannequins in a further 49 stores this Spring including Melbourne CBD, Penrith, Chadstone, Bondi, Geelong, Midland, Chermside, Brisbane CBD, Joondalup and Perth.