Petstock to sell-off Launceston Central store after ACCC investigation

Launceston will lose one of its three Petstock stores following an agreement between Petstock and the Australian Competition and Consumer Commission (ACCC). Find out why.

2/11/2023 Gina Cass-Gottlieb is the chair of the ACCC, speaking during the Economic & Social Outlook Conference in Melbourne. Aaron Francis / The Australian

Launceston will lose one of its three Petstock stores following an agreement between Petstock and the Australian Competition and Consumer Commission (ACCC).

The ACCC began an enforcement investigation in March this year into Petstock’s previous business acquisitions, including an Animal Tuckerbox store in Launceston, now Petstock Launceston Central.

The ACCC Chair Gina Cass-Gottlieb said the acquisitions of the Best Friends Pets, Pet City, and Animal Tuckerbox chains and the Pet & Aquarium Warehouse store in Victoria were not detailed to the ACCC and may have “contravened the Competition and Consumer Act” in acquiring its closest competitors in several local markets, including Tasmania.

20/11/2023 Pebbles and Barney at Petstock in South Melbourne under a Christmas tree. Aaron Francis / Herald Sun

“Petstock’s acquisitions removed some of the few remaining chains of specialty pet retail stores that competed against Petstock and Petbarn,” she said.

After the ACCC raised these competition concerns with Petstock and Woolworths, who is unopposed by the ACCC in gaining a 55 per cent controlling interest in Petstock, each offered to provide court-enforceable divestiture to resolve the concerns.

This includes the sale of Petstock Launceston Central and 40 other specialty pet retail stores, 25 co-located veterinary hospitals, four brands and two online retail stores.

“Under the current informal merger regime in Australia, there is no law requiring merger parties to notify the ACCC of proposed mergers and acquisitions or to wait for clearance before they can proceed,” Ms Cass-Gottlieb said.

“Petstock’s decision to make numerous acquisitions of this scale without notifying the ACCC demonstrates the limitations of Australia’s current merger regime. It relies on the goodwill of businesses to voluntarily notify the ACCC and await an outcome.”

The ACCC’s investigation indicated that before Petstock’s acquisitions, Animal Tuckerbox had a “significant presence in Tasmania”, where fewer mainland specialty pet retail chains compete.

Petstock will maintain ownership of Petstock Launceston and Petstock Country Launceston.

Originally published as Petstock to sell-off Launceston Central store after ACCC investigation