More aggressive pricing at Pet's Place

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The creation of a category management system has been a key focal point at Pet's Place in recent months. Each of the approx. 200 stores now has an inventory management system that provides detailed information on the level of turnover of each individual product. From this, the IJsvogel Group, which operates Pet's Place, has learned that although sales of super-premium and premium pet food are developing satisfactorily, the company is lagging behind when it comes to mainstream products in which Pet's Place is in competition with the grocery trade. Price-cutting campaign To enhance its market position in the economy and medium price segment, the IJsvogel Group has cut the price of around 300 to 400 basic daily essentials. In parallel to this, the number of stock-keeping units (SKUs) from the supermarket sphere has been increased. In the last few weeks, the chain has also launched a new private label for dog and cat food in the mid-price segment. The line comprises 20 to 30 products and covers the pet's complete life cycle. Dog products are offered in 1 kg, 3 kg and 10 kg pack sizes, while products for cats come in the pack sizes 400 g, 1 kg and 4 kg. The package of measures has evidently brought Pet's Place the desired success so far: "In recent months we have succeeded in increasing the number of customers in the stores significantly," explains director Ard Malenstein. At any event, dog and cat food sales are increasing at an above-average rate at Pet's Place: sales are up by 10 to 12 per cent, while the total sales of the stores this year are estimated by Ard Malenstein to increase potentially by 4 to 5 per cent. By comparison, the group of companies, including the wholesale arm and other retail activities, could see an increase in sales of 8 or 9 per cent by the end of the year, says the IJsvogel Group's boss. New XL prototype Another important objective being pursued by Ard Malenstein for Pet's Place is enlargement of the retail areas. For some time now the speciality chain has been working to increase the average square footage. The IJsvogel Group is gradually shedding retail areas of less than 150 m², as these stores are no longer cost-effective, according to Ard Malenstein. To gain a distinctive position in the market, the company has developed two store prototypes: Pet's Place with a retail area of up to 500 m² and Pet's Place XL with a retail area of between 500 and 2 000 m². The pilot store…