Against The Tide: Petdirect Expands From Digital To Physical Retail Amid Economic Headwinds

Wednesday, 30 April 2025, 11:56 am
Press Release: Petdirect

In a bold move against prevailing economic trends, New Zealand's leading online pet retailer, Petdirect, announces plans for major retail expansion with new stores opening in Mt Roskill, Auckland and Tower Junction, Christchurch in the coming months. Following the tremendous success of its first brick-and-mortar location in Takapuna, which opened in October 2024, this strategic expansion solidifies the company's position as a dominant force in New Zealand's pet retail sector. The 100% Kiwi-owned and operated company, which just celebrated its 5th birthday, has rapidly evolved from an online startup during the pandemic to capturing a majority share of the online pet supply market.

Founded in March 2020 by GrabOne Founder Shane Bradley, Petdirect has defied conventional retail wisdom by starting as a digital-first business and now expanding into brick-and-mortar – a reverse of the traditional retail evolution pattern. The company's decision to invest in physical retail spaces comes after securing significant backing from Pencarrow Private Equity in January of last year, specifically aimed at accelerating Petdirect's ambition to become New Zealand's #1 pet supply retailer across all channels.

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"This isn't just another store opening; it's the next chapter in our customer-focused growth strategy," says Petdirect CEO Dave Anderson. "While many retailers are consolidating or closing physical locations, we're listening to what Kiwi pet parents want – the convenience of online shopping complemented by immersive, expert-led in-store experiences."

The expansion comes at a time when New Zealand retail faces significant headwinds, with inflation pressures and consumer spending constraints affecting many sectors. However, Petdirect is leveraging the unique resilience of the pet care category, where spending remains remarkably stable even during economic downturns.

"The bond between Kiwis and their pets creates a remarkably resilient market," explains Anderson. "When pets are family members, their care becomes a non-negotiable expense.”

Reflecting trends seen globally where the pet industry demonstrates resilience, the New Zealand pet food market specifically shows characteristics of being relatively resistant to recession, supported by owners prioritising spending on their pets even during economic uncertainty. This resilience is already creating real opportunities at home, with Petdirect now employing over 100 New Zealanders across its operations, including a customer care team based entirely in Aotearoa.

As a 100% New Zealand-owned company, Petdirect's expansion strategy reflects a deep understanding of the local market and Kiwi pet owners' specific needs. The new stores will serve as community hubs, offering expert face-to-face advice, click-and-collect services, interactive experiences like a pet treat bar, and curated selections of premium pet products.

Customers benefit from the same Pet Perks member pricing whether shopping in-store or online through the company's integrated loyalty program. An innovative "endless aisle" solution ensures shoppers never leave disappointed – if a product isn't available on the shelf, customers can purchase from Petdirect's extensive online range right in the store and have it delivered swiftly to their door, typically the very next day in metro areas.

"Being Kiwi-owned means we make decisions right here, with a genuine understanding of local pet parents' needs," says Anderson. "Our physical stores will embody the same commitment to expertise, quality, and service that has driven our online success, while creating meaningful connections within local communities."

The company's unique partnership with Air New Zealand's Airpoints program further emphasises its local credentials, offering customers the ability to earn Airpoints DollarsTM on purchases across both online and in-store channels.

Looking ahead, Petdirect has ambitious plans for a nationwide retail network, with multiple additional locations on the horizon beyond the upcoming Mt Roskill and Tower Junction stores. This expansion builds on the company's firmly established digital dominance, where it currently holds majority market share in the online pet speciality supply sector.

"The future of retail isn't online or offline – it's the seamless integration of both," Anderson emphasises. "Our stores aren't just sales channels; they're powerful community hubs, and centres for building trust through face-to-face expert advice. They enhance our online business, and our online strength supports the stores."

This omnichannel approach positions Petdirect to capitalise on changing consumer behaviours, where shoppers increasingly expect to move fluidly between digital and physical shopping experiences.

About Petdirect

Petdirect's mission is to establish itself as New Zealand's most trusted and convenient online destination for pet owners. Launched on the eve of the nation's first lockdown in March 2020, Petdirect swiftly rose to prominence in the online pet speciality market, offering an extensive array of premium products and services at competitive prices. Known for its exceptional customer service and commitment to market-competitive pricing, Petdirect boasts 100,000 active customers and achieved the leading market share in the online pet speciality market in July 2023. For more information visit petdirect.co.nz.

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