Watchdog takes leash off Absolute for Woolies

Woolworths’ acquisition of Absolute Pets received a nod from the Competition Commission, paving the way for the retailer to accelerate its position in one of the fastestgrowing areas.

On Friday, the commission announced it had recommended that the Competition Tribunal approve Woolworths’ proposal to buy a 93.45% stake in the company from Sanlam Investment Management and Absolute Pets management, saying that the proposed transaction is unlikely to substantially lessen or prevent competition in any market. Absolute Pets has 150 stores and Woolworths plans to add more shops.

To deal with public interest concerns, the commission said Woolworths had committed to creating new permanent employment opportunities at the new stores and establish an employee share ownership programme. It would financially support the participation and expansion of blackowned small to medium enterprises that supply products to the company.

Woolworths said at the end of February when it released its half-year financial results to December that the remaining management stake in Absolute Pets will be acquired over an agreed period. The acquisition will allow Woolworths to accelerate its growth ambitions to become the end-toend pet care destination for consumers, said Woolworths CEO Roy Bagattini during the presentation.

Absolute Pets sells pet food and a range of other products including accessories and toys, hygiene and cleaning, clothing and fashion, health and travel items for cats, dogs, and small pets.

“This is a big opportunity for us. It is a high- and fast-growing category. Our customers are certainly spending a lot of money on their pets and we want to provide them with the absolute best experience,” Bagattini said in an interview after the presentation.

Woolworths competitors Shoprite and Pick n Pay are aggressively expanding into adjacent categories including pets, baby and clothing. Spar this week announced its intention to expand into non-grocery areas such as pets and other niche areas.

Woolworths, which is investing R10bn over three years, is doubling down on its expansion of the business and has created Woolworths Ventures to accelerate the rollout of new categories including pet care, food services WCafe, standalone liquor business WCellar, new small store clothing formats of WEdit clothing, and also finding other revenue streams.

“While the concept of ventures for an accelerator is nothing new, it is a first for our group and a potential game changer for us. The role is not only accelerating new revenue streams … it is also to attract new custom