Creature comforts despite crunch

Specialist chains around the world continue to generate bumper same-store sales growth, robust profitability and an increasing shift towards the lucrative services end of the pet care market. Of course, pet care merchandise is also a core category sold through other channels such as supermarkets, discount stores and drugstores. As the bulk of the pet care market is accounted for by pet food – which is generally regarded as non-discretionary in most countries around the world – sales of the category have been holding up very well. Like health & beauty products and alcohol, pet care is one of the few significant ‘grocery’ categories that are extensively sold through a sizeable speciality channel in addition to mainstream grocery retailers. Specialists such as PetSmart, Fressnapf and Pets At Home are typically among the fastest-growing in their respective markets, bolstered by rapidly expanding store bases, extremely favourable pet ownership trends, the emergence of so-called ‘pet parenthood’ and the introduction of lucrative services such as veterinary practices, grooming salons and lodging facilities. In the non-specialist channel, pet care has become a key component of a fully rounded grocery one-stop shop. Such is its importance that supermarket retailers around the world have invested heavily in private labels, merchandising initiatives and marketing to promote their credentials. For many (human) consumers, pet care and pet food purchases can often be viewed in a similar way to the purchase of food for family members. So engaging with shoppers in the pet care category is a key imperative for engaging with them throughout their grocery shop. As evidenced by the infamous pet food recalls of 2007 in North America, many shoppers genuinely regard pet food as an emotive subject – ‘pet parents’ will walk away from brands and retailers if their trust in the product is shattered. View in the US The American Pet Products Association (APPA) is forecasting that US pet industry spending will reach some § 45.4 billion in 2009. This would make the US pet industry equivalent to the 75th largest economy in the world, larger than the entire economic output of countries such as Sri Lanka or Serbia. The pet food segment of the industry is broadly self-explanatory, while the pet supplies segment of the industry includes products for dogs and cats such as edible bones, premium healthy edible and non-edible chews, leashes, collars, toys, pet carriers, grooming supplies and…