The share sale sent Endeavour shares tumbling,and the stock finished down 4.3 per cent for the day,but analysts remain upbeat about the liquor retailer’s trading opportunities in the lead-up to the festive season.
The supermarket giant’s decision to liquidate some of its stake in Endeavour fuelled speculation that Woolworths is keen to make investments to expand its reach in growth categories like pet care.
Woolworths boss Brad Banducci said the decision to sell down the group’s stake in Endeavour came after a successful transition from ownership to partnership. “The proceeds will be used for strategic investments and general corporate purposes,” he said.
TheAustralian Financial Review reported on Monday that the retail giant was in late-stage talks with PETstock to take a major stake in the business.
Woolworths declined to comment on the possibility of a strategic investment,while PETstock did not respond to requests for comment from this masthead.
But Woolworths has ridden the trend of rising spending on pets in recent years,offering a branded pet insurance offer and entering a joint venture with Hollard Group’s PetSure for an online specialty pet goods business called PetCulture.
Australia is still in the midst of a pandemic-triggered pet spending boom,with shoppers splurging tens of billions of dollars on dogs and cats each year.