Greencross has its sights set on growing its 7.5 per cent marketshare of the $8 billion pet care industry to 20 per cent by becoming vertically integrated into a pet’s life cycle. The business started in 2006, when co-founders, Jeff David and Paul Wilson, bought a chain of 10 Pet Barn stores in NSW. By 2008 there were 45 stores along the east coast of Australia. At the same time, the business acquired part ownership of Animates, a pet supply chain in New Zealand, and has been rolling ou
ut Animates stores in NZ ever since.
The real transformation began this year, when Pet Barn merged with Greencross Vets, which was already listed on the ASX, and had more than 100 veterinary practices around the country.
This merger overnight made the business Australasia’s largest pet care company, and in August it was admitted onto the ASX 200 as one of Australia’s largest listed entities with a market cap of $1 billion.
The second part of the transformation occurred in July this year when the business acquired the 42 store City Farmers chain.
City Farmers stores have since been converted to Pet Barn, except in its home state of Western Australia, where City Farmer’s is a household name.
Matt Toohey, Greencross GM property Australia and New Zealand, told attendees of the LFRA 2014 Victoria Forum, the company’s goal is to become Australasia’s petcare specialist of choice.
“We think with the assets that we’ve got, and that vertically integrated model we’re striving for, we’re well placed to take advantage of that,” he said.
Australia has one of the highest level of pet ownerships in the world, at 64 per cent, second only to the US at 68 per cent.
Today, Greencross operates with 298 locations in Australia and NZ. Across the three brands, Animates, Pet Barn, and City Farmers there are 182 retail stores, with the balance made up by veterinary surgeries.
Stores are typically located in homemaker centres, with an average footprint of 800sqm.
There are 116 vet operations around the country, including 24/7 animal emergency centres in each capital city.
“The idea of those animal hospitals is that all the vets, not only our vets, but all the vets in those areas feed business to the 24 hour hospitals, which keeps them very profitable,” he said.
There is also a pet crematorium – Pets Eternal.
“We’ve got the retail stores referring works to the vets, the vets referring works to the animal emergency centres, then onto our laboratories, pathology centres, and then back through that process,” said Toohey.
Including the City Farmer’s acquisition, 2014 has seen the opening of more than 60 new Pet Barn stores.
The brand plans to continue this growth, with five new retail stores and three new vet practices to open by Christmas.
In 2015 it will open a further 35 new locations, including co-locations that will house a 800sqm Pet Barn and 200sqm Greencross Vet under one roof.
