PetSmart reinvents itself

It was revealed in June that PetSmart intended to cut its workforce at the head office in Phoenix, Arizona, where around 1 700 staff are currently employed, by 15 per cent. The company only managed to achieve a modest increase in sales last year and in the first quarter of the new fiscal year. Above all, it is being adversely affected by the strength of online retailing and aggressive price promotions by mass merchandisers such as Wal-Mart. 

The chain, which operates over 1 400 pet stores in the USA, Canada and Puerto Rico along with over 200 in-store PetsHotels for dogs and cat boarding facilities, was acquired by an investor group led by private equity firm BC Partners for $8.7 bn at the start of the year. This was followed by a complete management clear-out in March. Michael Massey, an experienced veteran of the retail trade previously employed by Collective Brands, was appointed new CEO of the company.

PetSmart laid off 176 employees in "support group and field leadership positions" back last September. The layoffs now announced will only affect positions in the home office or positions that report to the home office, according to a company spokeswoman. The elimination of positions will not affect specific departments. "This is an important step to ensure that we are staying true to our commitment to become a highly efficient retailer and to further invest in the future growth of the company," said the spokeswoman.

Restructuring of the company also includes modernisation of the stores, some of which have retail areas that fall well short of the accustomed standard in retailing now. In Orlando, for instance, the entire layout was recently revamped in one pilot store. The product groups and sub-categories were made much clearer, communication at the POS was improved and the shelving was given greater appeal through the use of attractive posters showing people and pets together. Better use was made of the gondola heads of the shelving to draw attention to special campaigns, current promotions and new products. The pet departments were also given a makeover.