Fressnapf grows even in times of crisis

In the difficult year of 2022, the Fressnapf Group increased its turnover by over eleven per cent to more than 3.5 bn euros. Even if the growth in sales is probably considerably smaller when adjusted for inflation, Europe’s leading pet store chain has still demonstrated impressively its crisis resistance with these figures. In like-for-like terms, the group recorded growth of nearly eight per cent in a year-on-year comparison.

The corporate group achieved a sustainable increase in all 13 countries, according to a trading statement relating to the previous year’s trend. Poland (+53 per cent) and France (+25 per cent) stood out in particular on account of the huge growth in sales and significant expansion. In Ireland, sales revenue was boosted by around 43 per cent by the acquisition of a competitor. In the statement, Fressnapf did not set out the performance in the German pet supplies market separately, prompting the conclusion that growth there did not quite attain the level achieved in many other country markets.

The high sales growth was accompanied by a significant expansion in the store network, with the European market leader adding approximately 130 branches to its network in 2022. Internationally, the company will grow more strongly in future through holdings, joint ventures and cooperative initiatives, as already shown last year by the merger of the Arcaplanet Group with Maxi Zoo and the stake acquired by Fressnapf in Croatia’s Unconditional Group. Online sales totalled 329 mio euros in 2022, increasing by 34 per cent over the previous year, and are expected to rise steeply in future.

Fressnapf’s success has not just fallen into its lap, however, stresses company founder and owner Torsten Toeller: “One crisis has followed another. Regardless of whether trade conflicts, the pandemic, supply chain problems or raw materials shortages are the issue, the only constant is change and that has demanded everything of the management. We have prepared ourselves properly for this and as a financially stable company we are benefiting from our resilient business model and our strategy of an omnichannel eco-system.”

“We are growing sustainably in all countries and channels,” underlines Dr Johannes Steegmann, CEO of the Fressnapf Group. “Nevertheless, our customer base has become considerably more price-sensitive due to inflation and rising energy costs along with the increasing cost of living. With our ‘Fressnapf Friends’ customer loyalty programme we have succeeded in winning over new and existing customers.”

Six months on from the programme launch, ‘Fressnapf Friends’ has already achieved up to 50 per cent sales penetration in Germany, France, Austria and Poland. Steegmann adds: “We are finding in parallel that not only are daily requirements covered by us, but that new and innovative additional services of our eco-system are gaining in importance.” These include telemedical consultation with Dr Fressnapf, pet insurance, GPS trackers, grooming salons, the Meat Corner and surprise subscription boxes for dogs and cats.

The digital foundation for expansion, services and other offerings is formed by a modern IT platform. “On this we will offer products and services catering to individual requirements 24 hours a day, seven days a week for pet lovers to be able to experience the eco-system. They benefit from a central customer account, for example, as the sole access to many different omnichannel services. This is how we fulfil our mission of making the life of people and pets together simpler, better and happier,” says Steegmann.

In its transformation from supplier to care provider, the Fressnapf Group intends to invest more than 100 mio euros of its own resources - the highest sum in the company’s history - in its omnichannel eco-system this year, too. “We are following our path consistently and investing our own funds in the expansion and modernisation of our branch network with over 100 new stores per year, in digitalising our business model and in extending our logistics network,” says managing director Christian Kümmel, emphasising the company’s aspirations.