Spar bets on pet retail to drive turnaround, targets 30% revenue from new ventures

Spar is banking on its new pet supply retail chain Pet Storey to help fuel its strategic turnaround, with the group gunning for 30% of its total revenue to come from adjacent businesses such as Build It, Pharmacy and Pet Storey within the next five years, CEO Angelo Swartz said.

The retailer, which has faced pressure to stabilise its core business in recent years, on Thursday unveiled what it said is Africa’s largest pet store in Boksburg as the flagship of a planned 100-store rollout by 2026. About half of those stores will be new, creating jobs and opportunities for franchisees and suppliers, Swartz told Business Day.

“Spar’s aspiration is to achieve a 30% contribution from adjacencies over the next five years. These include Build It, Pharmacy and the newly launched Pet Storey format. Build It and Pharmacy contribute 15% of overall turnover and Pet Storey will be an important addition to this growth,” he said.

“As the group turns its focus towards exploring future growth strategies, we continue to look for areas of the market where independent retail can thrive. Pet Storey is a clear manifestation of this revised strategy.”

Swartz said the company would not expand to the rest of Africa yet, but did not rule out the possibility. 

He said the group planned to build out the chain through a flexible franchise model, including conversions, co-branding and greenfield sites, while also exploring online and delivery services in partnership with Uber Eats.

The Boksburg store is a conversion of a former Pet Masters outlet and is positioned as the flagship for a franchise network that Spar intends to scale rapidly, with 25-30 stores expected by year-end.

Spar’s entry into pet retail comes amid intensifying competition in the market, which has fast become a battleground for retailers.

Rival Shoprite has already expanded its Petshop Science network to 144 stores and roped in its successful Sixty60 delivery service to boost the chain, while Woolworths finalised its acquisition of a 93.45% stake in Absolute Pets last year, adding more than 150 stores to its portfolio.

“This is a bold move designed to keep pace with evolving consumer lifestyles and the humanisation trend with pet parenting, while creating new opportunities for new and existing entrepreneurs, suppliers and an unrivalled experience for pets and their parents,” said Spar business development executive Rob Philipson.

Pet ownership in SA surged during the Covid-19 pandemic and continues to rise, with more than 22-million pets in households nationwide, according to Euromonitor International. Annual consumer spending on pet food and accessories is estimated at R8bn, which is projected to grow 2.5% by 2026. 

Shifting consumer behaviour

“South Africans are now spending more time at home, rethinking how they live, and placing greater value on companionship. This new pet store brand is our way of adapting to those shifts, while anticipating where consumer trends, and specifically those of pet parenting, are headed next,” said Philipson.

“We are delivering an immersive pet retail experience that is accessible, affordable and inspiring — for pet lovers and more importantly, their pets.”

The local market is drawing heavy investment from major retailers, which see pet care as a category aligned with changing consumer behaviour.

“Pet care in SA is experiencing growth in both retail value and volume terms, primarily fuelled by the rising pet population combined with increasing urbanisation rates,” Euromonitor said in a recent report.

More than just food

Spar’s new chain is pitched as more than a pet food outlet. According to Philipson, the group wants Pet Storey to break away from the traditional, clinical feel of pet shops and instead create a playful, immersive space that feels like a toy store for pets.

Shopping with your pet, and not for them, is a fundamentally different approach to pet retailing.

—  Rob Philipson, Spar group business development executive

Spar is positioning the brand as experience-driven, with pets exploring and enjoying the stores with their owners, rather than owners shopping alone on their behalf.

This was why the stores were designed with direct parking access instead of being stuck inside malls where pets were not allowed, Philipson said.

“Shopping with your pet, and not for them, is a fundamentally different approach to pet retailing. Just like children’s eyes light up in a toy store, we want pets to ‘sniff and feel’ that same spark of joy, fun and curiosity when they walk through our doors,” he said.

The pet arena already features specialist brands and global players such as Mars, Nestlé Purina, Colgate-Palmolive’s Hill’s Pet Nutrition, and producers including Montego Pet Nutrition and RCL Foods’ Bobtail. With Spar’s entry, competition is expected to intensify further as retailers seek to secure market share in a sector projected to reach $404m (R7bn) in pet services revenue alone by 2030.

Update: September 21 2025

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goban@businesslive.co.za