“A pivotal year for the business”

“Financial year 2024 has been a pivotal year for the business, having delivered some key building blocks of our platform for long term growth,” says Lyssa McGowan, chief executive officer of the leading British pet retailer Pets at Home. The retail group’s total revenue grew by 5.2 per cent to GBP 1.5 bn (1.76 bn euros) in the period under review, with group like-for-like (LFL) revenue up 5.1 per cent. Vet Group revenue grew by 16.8 per cent, and LFL went up 16.5 per cent, with record sales supported by higher average transaction value, mix and visits as clinical capacity increased. Retail revenue grew by 4 per cent, and LFL went up 4.1 per cent. Q4 LFL was in line with expectations with continued volume growth and slowing inflation in food, and softer performance within accessories, explains the CEO.

Pets at Home opened five new pet care centres in fiscal 2024 and carried out 41 store refits. The retailer also opened three new veterinary practices, had 26 practice extensions and 10 company-owned to conversions, supported by further progress on veterinary talent. Pets at Home emphasises the success of its subscription model, comprising 1.7 mio subscriptions, now generating 10 per cent of consumer revenues. The retailer is sure that the launch of its digital platform (“an important milestone in the digitalisation of the business”) will offer customers enhanced subscription capability with improved choice and flexibility. The company has started a new app and positioned its website “to bring together everything owners need to care for their pet,” as Pets at Home points out. The retailer is also proud to be able to grow its customer base steadily. “We now have 7.8 mio Pets Club members, up 2 per cent with strong retention and continued normalisation in new puppy & kitten sign-ups as expected.”  McGowan states that she is very optimistic about the future. “Whilst the external trading environment has been subdued, overall pet care spend has proven resilient, and in the year ahead, we should begin to benefit from previous investments and key productivity programmes.” Over the first six weeks of the new financial year, Pets at Home has seen low double-digit growth in its Vet Group, but with retail at -2 per cent – “broadly in line with plan,” the CEO comments. “Importantly, through this period we have consistently won shares in our key food category…