A strong development

Winds of change"The pet trade is going through a process of change all over the world. The trend towards chains and multiples is apparent in an increasing number of countries." This was the prediction made by PET worldwide in its first issue ten years ago, when it was still known as PET in Europe.The process of change has actually taken place, but now as then it is the case that cross-border expansion of the trading groups is clearly being kept within limits. From Russia to Australia, from Portugal to Canada, there are now strong, fast-growing speciality chains in the pet supplies trade. Some of them are limited to a particular region of their country, while some strive for national coverage.But national differences are still very great. Chains that achieve high sales in Brazil are not necessarily successful in Argentina. Even countries that speak the same language have different customs, different requirements and different opinions for the most part. Many expansion strategies often fail to take this into account.A sector of individualistsCan you still remember the UK company Sinclair? Or the French pet supplies chain City-Zoo? Sinclair was acquired by Beaphar in 2007. Fressnapf swallowed up City-Zoo back in 2004, thereby paving the way to enter France. There have been many takeovers and company purchases in the last ten years. Rodi Petfood, Gabber, Wagner & Keller, Simontorp, Multivet and Seven Seas are all companies that ceased to exist several years ago.One of the most spectacular acquisitions of recent times was the purchase of Royal Canin by Mars. In contrast to many companies taken over, which disappear completely or of which only the last vestiges remain following the takeover, Royal Canin largely retained its independence following its acquisition by Mars. Although concentration has increased in the last few years, the pet supplies sector remains a sector of individualists, something that is confirmed by the steady flow of new firms entering the pet market.Online shops surging aheadThe winner in the pet supplies trade in the last few years has been online retailing. The growing spread of smart phones is expected to provide further impetus for e-commerce. One of the most successful companies to date in Internet pet product retailing is Zooplus AG, based in Munich. Admittedly, the listed company has virtually never succeeded yet in ending a financial year in the black. The executive board made it clear this year that making a profit was not the…