Activist group Disrupt Wars was going to "Crash the Christmas Windows" on Bourke Street in Melbourne's CBD on Sunday, with banners, flags, placards, noisemakers and props.
However, their plans changed following backlash from the state's premier who was angry Myer had to cancel the annual event for families on safety grounds.
"The children coming to see the Myer Christmas windows were never a target because children are not a target," protest organiser Amy Settal said on Friday.
"In light of Myer's decision to cancel their window reveal event, planned disruptions will not go ahead."
Myer cancelled the event on Thursday evening to "ensure the wellbeing and safety of customers and team members".
However, the department store retailer's Christmas window display will be visible, as planned, from Sunday until early January.
There will be no fanfare to launch Myer's Christmas windows due to a planned protest action. (Diego Fedele/AAP PHOTOS)
Premier Jacinta Allan had condemned the protest action as "ugly" and criticised the activists for ruining "these beautiful Christmas traditions".
"Blocking Christmas windows is not going to change one single thing in the Middle East," she told ABC Radio.
"This is a really small group of people who are choosing to politicise Christmas, to politicise a beautiful event."
Blocking the Christmas windows won't change a thing in the Middle East, but it will let down a bunch of kids in Melbourne. — Jacinta Allan (@JacintaAllanMP) Who does that help? We are all a bit sick of this stuff.November 14, 2024
Earlier, Melbourne's Lord Mayor Nick Reece said he hoped the protesters organisers would "realise that this is a really dumb thing to do".
Ms Settal said the protest would have been peaceful and non-violent.
"Myer's 'share the joy campaign' is offensive given the absolute devastation children in Palestine are experiencing right now," she said in a statement.
"Celebrating overconsumption while the historic birthplace of Jesus is under bombardment is abhorrent.
"The intention was to interrupt the media spectacle and economic gain sought by Myer."
A protest group says it wants to highlight the deaths of children in Gaza. (Steven Saphore/AAP PHOTOS)
Victoria Police had repeatedly asked the group not to protest at the Christmas windows.
"While we always respect the right for people to protest peacefully, we are clear that this should be done without impacting the broader community," a spokesperson said.
Myer was established by Russian Jewish immigrant Sidney Myer in the early 20th century and has 56 stores around Australia.
Viewing the Bourke Street store's Christmas windows has been a tradition for many families since the display started in 1956.