Pets are hot property in Australian retail,with giants like Bunnings and Woolworths making significant investments into pet supplies over the past year despite fears of a broader discretionary spending slowdown.
Woolworths made a $586 million investment to take a majority stake in Ballarat-founded pet supplies businessPETStock last December,while Bunningsexecuted a major expansion of its pet goods category in March.
Frizell says it’s no surprise that the retail conglomerates want exposure to the sector,which was growing strongly even before thepandemic prompted a puppy boom.
“It’s a great sector. They are seeing the same macro dynamics that I do – it’s still early in its evolution,” he said.
Pet Circle,which was founded in Sydney in 2011,has started the new financial year with a fresh $75 million funding boost from existing investor,Prysm Capital,helping Pet Circle maintain its billion-dollar valuation.
Prysm’s co-founder and partner Matt Roberts says the Australian market is still in the early stages of the“humanisation of pets” trend.