Growing competition in the pet trade

Recently these chains have tended to become increasingly popular among retailers concurrently with the supposed “threat” from competitors in Europe and also the tougher competition that is evident at a national level also in the Scandinavian trade. The aim has been to give all chains of any size an opportunity to outline their objectives, and provide a few basic facts about their operation. All the chains mentioned comprise full-scale pet shops, including those that stock live animals.
Sweden
According to the statistics, Sweden has about 700 specialized retailers in the pet trade, many of which are very small units. Approximately 50% of these retailers also handle pets. Well over 100 pet shops featuring a full range are now organized into various chains in Sweden.
The Swedish specialist pet chain Arken, with around 30 shops, is expanding substantially.
Arken (Hemdjurshandlarna AB)
This company was founded in 1986 on the initiative of a wholesaler in Sweden, and was a “voluntary chain” for many years. The chain very quickly proved to fill a need in the market, and showed rapid growth. Soon it became evident that restructuring and a total concept were essential for the future, leading ultimately to a conversion to franchising. This took place about two years ago, and Arken now has a total concept that is firmly controlled, which will in the long run provide strength and a satisfactory ability to compete. Arken has a three-year strategic plan and aims eventually to become the leading pet chain in Scandinavia. Arken Hemdjurshandlarna AB owns the concept and the trademark. The concept comprises two types of pet shops, the first a retail area of 150/250 m² in city centres or shopping centres and the second sites of 400/500 m² in external centres.  Today Arken shops can be found from Haparanda in the north to Ystad in the far south. According to the strategic plan, Arken will expand to the rest of the Scandinavian markets. Last year (2001) the shops had a joint turnover of approx. 120 Million SEK incl. VAT (13 mio €). Arken currently comprises around 30 pet shops.
E-mail:lars.antas@arkenbutikerna.se
Djurmagazinet AB
is a voluntary chain founded as long ago as 1982. Its objective is to take care of the interests of individual shops  in the sector through, among other things, assistance in making contacts with suppliers. Support is also available with regard to establishment, planning, budgeting and on questions of marketing and organization. The aim is for retailers to…