A mixed bag in the mountains

Scarcely any other sector of the Austrian economy is currently doing as well as the pet supplies sector. It's a view that virtually every expert in the European sector would subscribe to without hesitation. This is due among other things to the very high level of purchasing power enjoyed by the Austrian population. Data from the market research company GfK-Geomarketing put the figure in 2013 at € 179.8 bn, equivalent to an average of € 21 295 per capita. A statistic from the Austrian statistical office (Statistik Austria) also demonstrates just how willing Austrians are to lavish care on their pets. Statistik Austria routinely records consumer spending by Austrians, including spending on "services for pets", on a five-yearly basis. According to the statistical office, these expenses have risen considerably since the last survey in 2005. Statistik Austria says that all three million Austrian households, including those without pets, were spending three euros per month on pet services in 2005. This figure increased to € 4.50 in 2010 and is still rising steadily. In the opinion of many specialists, the reasons for the Austrians' growing outlay on their pets are the same as elsewhere in Europe. Demographic change, for one thing, is spawning a burgeoning population of old people for whom pets dispel the often prevalent feeling of loneliness and boredom. Like the rest of the world, Austria also has a growing number of single-person households, in which pets play the role of partner substitute and are cared for accordingly. Gifts for four-legged friends range from expensive collars and leads to regular visits to the grooming salon.Who benefits from the rising profits?But who are the winners in this growing market? Certainly the big pet store chains from Germany, such as Fressnapf, Futterhaus and Zoo & Co, who have built up a strong network of outlets in Austria. Fressnapf currently operates 119 stores in the country and had sales of € 156 mio in 2013. The second biggest German retail chain, Futterhaus, offers its customers 25 stores to shop at and had sales of € 18 mio in 2013. Futterhaus is regarded by sector insiders as one of the most dynamic and fastest-growing market players. Zoo & Co. with 10 stores closes the circle of chain store groups in the alpine country. Yet in spite of this concentrated market power of the big chains, there's no need to be concerned about the stand­alone pet supplies businesses in Austria. A strong network of independent pet…