Hundreds still attended the store for the first day of the Christmas displays, while about a dozen people protested outside.

Myer announced it cancelled the event on Thursday after the group made their plans to protest known.

"That there was a group of people that chose to politicise ... what is a beautiful annual tradition and event for children, we condemn it," Premier Jacinta Allan told reporters at Melbourne's Town Hall on Friday afternoon.

"And in the face of the condemnation, I have led over the course of today - we have seen those plans being cancelled."

She said Victoria Police's chief commissioner had assured her the force had enough resources and a "strong tactical plan" to deal with protests over the weekend but ruled out a NSW-style permit.

"Do we really think the same sort of morons who want to disrupt a beautiful Christmas tradition for families are going to apply for a permit? They won't," the premier said.

She flagged proposed anti-vilification and social cohesion laws due to be introduced to the state parliament and said they were designed to wind back division and equip police with additional powers.

Opposition leader John Pesutto called the protest plan "disgusting" and said the threat of a protest had already driven Victorians away.

He took aim at the premier's response, saying it was "not acceptable for Premier Jacinta Allan to be furious but unwilling to act".

"It shouldn't be possible for protesters, under the guise of democratic rights, to actually intimidate people out of their own city," he said.