The battle for the hearts and wallets of pet owners in SA is heating up after Shoprite’s Checkers brand bolstered its pet care offering by opening more Petshop Science stores in the year to end-June, in a bid to fend off a challenge by Woolworths.
With significant investments and strategic acquisitions, the competition between these retail giants is set to intensify, promising more choices and better services for pet owners across the country.
On Tuesday, Shoprite said that Checkers opened 33 new Petshop Science stores in the year under review, bringing its total to 86 stores and indicating Shoprite’s strategy to dominate the pet care market.
Checkers became the first supermarket to launch a pet shop with a broad selection of products at supermarket prices in SA.
Woolworths quickly followed, announcing in 2023 its acquisition of 93.45% of Absolute Pets, a leading pet retailer in the country with about 150 stores nationwide. That acquisition was finalised earlier in 2024, solidifying Woolworths’ presence in the pet care market.
The competitive landscape is characterised by the presence of specialised pet-food brands that are not typically sold in grocery stores but are available in specialist stores or at veterinarians.
To capture the upper-end pet market, over the years retailers have been forced to own specialised chains, leading to Woolworths’ acquisition of Absolute Pets. Pet ownership surged during the Covid-19 pandemic as people spent more time at home, increasing demand for pet-care products.
For both Woolworths and Checkers, pet care has become a critical category as consumers view their pets as family members. According to 2023 Euromonitor data, SA is home to more than 22-million pets. Annual consumer spending on pet food and accessories is estimated at R8bn, with an expected growth of 2.5% by 2026.
The surge is reflective of global trends. The global pet industry, valued at about $320bn (approximately R6-trillion), is projected to reach $500bn (R9-trillion) by 2030.
In SA, the pet market is estimated at more than R8bn annually, highlighting significant consumer investment in pet care. A BrandMapp survey by WhyFive, targeting households with a monthly income of R10,000 or more, reveals that pet foods dominate the market, the Financial Mail previously reported.
However, sectors such as veterinary care, nutritional supplements, grooming services and pet accessories are rapidly growing.
Woolworths previously stated that it viewed the acquisition of Absolute Pets as a strategic move to become the “end-to-end pet care destination of choice in SA”.
Absolute Pets, founded in 2005, offers a robust range of pet nutrition and care products, alongside pet services and online sales.
Simultaneously, Shoprite is bullish about its ambitious expansion. The group has expanded its ecommerce presence with Petshop Science Online, offering more than 2,000 pet-related products from premium brands.
This follows the physical expansion of Petshop Science stores, with 22 new locations opened by October 2023. Shoprite also launched pet insurance in 2020, providing affordable coverage and relief for pet owners.
Annual results
Shoprite has reported a 12% increase in annual sales
as it opened almost 300 new stores.
The group said in a statement on Tuesday that total sales of merchandise for the 52 weeks ended June rose 12% to about R240.7bn from continuing operations, including the Ghana hyperinflation effect.
Excluding hyperinflation, sale of merchandise increased by a similar margin to R240.8bn.
The group added a net 292 stores during the period, including 73 OK Franchise stores, to total 3,639 stores from continuing operations.
The group’s core business, Supermarkets RSA, achieved sales growth of 12.3%, contributing 81% to total group sales. In the prior year period, sales increased by 17.8%.
Like-for-like sales growth for the period measured 6.3% with stores acquired from Massmart included in like-for-like sales growth only for the second half.
Internal selling price inflation averaged 5.8% for the period.
Checkers and Checkers Hyper reported sales growth of 12.3% with online sales from its Checkers Sixty60 on-demand platform increasing by 58.1%.
Shoprite and Usave reported sales growth of 10.7%, while LiquorShop sales increased by 20%.
The cost of diesel to power generators during load-shedding across the group’s Supermarkets RSA store base for the year amounted to R754m.
“This decrease in diesel costs should be considered in light of a commensurate increase in electricity usage. As a result, we anticipate the percentage increase in the group's water and electricity expense for the year should be mid- to low-single digits,” it said.
The group expects to release its full-year financial results on September 3.
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