Rédaction Africa Links 24 with Georgina Crouth
Published on 2024-03-17 19:54:22
The Competition Commission has given the green light for Woolworths’ acquisition of Absolute Pets from Sanlam Investment Management, with certain conditions attached. This acquisition, now awaiting approval from the Competition Tribunal, involves South Africa’s largest specialist pet products retailer, Absolute Pets, which operates 157 stores nationwide. Absolute Pets offers a wide range of pet products such as food, accessories, toys, hygiene products, clothing, health items, and pet services like grooming and pet spas. Established in 2005, Absolute Pets has built a strong customer base and product lineup over the years.
When Woolworths announced its intention to acquire a majority stake in Absolute Pets in October 2023, it highlighted the growth potential and attractiveness of the pet care market. Woolworths stated that pet care is an important category for its customers, who view their pets as integral family members. The acquisition of Absolute Pets was seen as a strategic move to enhance Woolworths’ position in the pet care market and provide customers with a comprehensive pet care experience.
WHL Group CEO, Roy Bagattini, expressed excitement about the partnership between Absolute Pets and Woolworths, citing their shared commitment to excellence and quality. The partnership aims to leverage their strengths to enhance the overall pet service and experience for customers. Absolute Pets CEO, Stephen Warner, and the existing management team will continue to oversee the business under the Absolute Pets brand with the support of Woolworths Group.
Woolworths already offers a range of pet products including food, treats, accessories, toys, clothing, and grooming items for cats and dogs. Additionally, Woolworths provides pet insurance through Woolworths Financial Services. As part of the acquisition, Woolworths will need to meet certain conditions set by the Competition Commission, including opening new stores, creating employment opportunities, and supporting black-owned small to medium enterprises within the pet-care products supplier base.
Bagattini mentioned that the pet segment has been successful for Woolworths, and the acquisition of Absolute Pets will further strengthen their position in the market. He emphasized the growth potential of the pet care sector and expressed a desire for Woolworths to become a leader in this segment in South Africa. Accessories and toys were highlighted as key selling points within the pet-care category, reflecting the strong consumer demand for such products.
The approval of the acquisition is expected within a couple of months, following discussions with the Department of Trade, Industry, and Competition. Bagattini reiterated Woolworths’ focus on becoming a leader in the pet care market and the excitement surrounding the synergies and growth opportunities that the acquisition of Absolute Pets will bring.
In conclusion, Woolworths’ acquisition of Absolute Pets represents a strategic move to strengthen its position in the pet care market and offer customers a comprehensive pet care experience. With a focus on quality, excellence, and growth, Woolworths aims to be a leader in the pet care segment in South Africa.
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