The Warehouse will no longer sell fireworks, saying they no longer reflect the company's values.
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The company said research showed more than half of customers preferred public fireworks displays over home celebrations, and nearly a third did not use fireworks at all.
Chief product officer Tania Benyon said "in line with listening to the community, and our ongoing sustainability efforts as business, we no longer feel fireworks have a place on our shelves".
Animal welfare charity SAFE chief executive Debra Ashton applauded the decision.
She said letting off fireworks caused animals psychological and physical harm, and she hoped other retailers would follow The Warehouse's example.
Each year, SPCA receives dozens of calls relating to fireworks, including animal injuries, frightened animals, missing pets and, occasionally, horrific abuse of animals.