For independents, opportunities to scale seldom arrive ready-made. Yet when Woolworths’ $586 million bid for a 55 per cent stake in Petstock prompted the Australian Competition & Consumer Commission to mandate the divestment of 41 pet stores and 25 vet clinics, an unexpected contender stepped forward. Family-owned PetO saw more than divested assets but a path to national growth. Founded two decades ago by brothers Nick Greenhalgh and David Rowe as a single store on Sydney’s Northern Be
ern Beaches, the retailer saw the acquisition as a “once in a lifetime opportunity.”
The deal, comprising the purchase of prominent brands Best Friends, Our Vet, My Pet Warehouse and Pet City, has transformed PetO from a 17-store regional chain into a national operator with 58 sites and a projected $200 million in annual revenue.
More importantly, it has impelled the company into the position of a credible third player in a pet care market long dominated by Petbarn (Greencross) and Petstock.
Bold decisions
The integration task was no less than enormous. PetO inherited four distinct brands, each with its own culture, systems and store design.
“There’s a lot to do,” Greenhalgh told Inside Retail. “Ultimately, we had to make a number of bold decisions. One bold decision was that we really wanted to wrap around one brand, not run several.”
Since March this year, every acquired store has been converted to the PetO banner. That required investment in signage, store re-layouts and new merchandising standards aimed at creating what Greenhalgh calls “a more shoppable” experience.
The consolidation gave PetO scale but also consistency, a critical factor in building customer trust across a dispersed network.
The support office also expanded rapidly to handle the growth, securing experienced retail leaders. “We’ve gone out and got some really strong talent,” Greenhalgh added.
The integration additionally highlighted several leadership lessons including that transparent communication was vital.
“You really can’t communicate enough in transitions,” he said. “Most people will say they’re up for the change, but change isn’t always comfortable. Sometimes you don’t get it right, and you have to admit that and be transparent.”
One ethical decision marks a clear line, which is PetO’s refusal to sell live animals. While not every staff member agreed, Greenhalgh insisted it was the right call.
“We didn’t want to profit from selling live animals,” he said. “It’s always about wanting as many people as you can on the bus… but also in the right seat on the bus.”
Against the giants
Now competing on a national stage, PetO must differentiate itself from corporate rivals.
Greenhalgh sees the answer in doubling down on community roots and category focus.
Strategically, PetO is also concentrating its assortment and expertise in dogs and cats, which make up 92 per cent of Australia’s pet market.
The approach taps into the emotional dynamics of modern pet ownership. Greenhalgh compares the sector to the baby category, where “the consumer is not the customer”. Pet parents, like new parents, are information-hungry and willing to invest heavily in care products.
“People often walk into stores with more questions than answers,” he said. “We want them to leave with what they want, a smile on their face, and hopefully having learned something.”
The acquisition vaulted PetO into national relevance, but Greenhalgh is clear that the real work lies ahead.
“Even if we open another 100 stores, we’d still only be number three,” he concedes. “So we’ve got an incredibly long runway in front of us. That’s the exciting bit – we’re never going to get to the end of that.”
For now, the focus is on stabilising the expanded network and extracting the full value of the acquired sites. The company will invest heavily in systems, talent and brand building to ensure consistency across its enlarged footprint.
Future capital partnerships or private equity interest could be possibilities, but Greenhalgh says the immediate priority is execution. “We’ve got a lot of work to do over the next three to five years.”
Why it matters
PetO’s bold leap changes the competitive dynamics of an estimated $14 billion industry where consolidation has been the dominant story.
It demonstrates that independent, family-run retailers can still thrive at scale, but only provided they combine community credibility with disciplined execution and professionalised support structures.
The broader lesson for the retail sector is that transformational opportunities rarely arrive ready-made, but when they do, leadership must be ready to seize them and convert.
As Greenhalgh put it, “It really probably is never going to happen again, certainly not in my lifetime.” Burgeoning big box retailers can either let the ship sail by or have a go.