Pet & Pet Supplies Stores
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 5,100 pet retailers in the US sell products and services related to pets, including pet foods, pet supplies, pet services, and live pets. The top four companies, including large retailers like PetSmart and Petco, account for 66% of industry sales. The industry also includes pet retailing franchises, such as PetLand.
Strong Sales Drive Heavy Competition
Strong industry sales have resulted in competition for pet products from a variety of alternative channels, including warehouse clubs, grocery stores, mass merchandisers, veterinarians, and E-commerce and catalog retailers.
Proliferation Of New Products
Similar to the human food market, the pet food sector is driven by product innovation, with manufacturers constantly developing and introducing new items.
Industry size & Structure
A typical pet store operates out of a single location, employs 27 workers, and generates about $3-4 million annually.
- The pet and pet supply retailing industry consists of about 5,100 companies that employ 138,100 workers and generate about $18 billion annually.
- The industry is concentrated at the top and fragmented at the bottom. The top four companies, including large retailers like PetSmart and Petco, account for 66% of sales.
- The industry also includes pet retailing franchises, such as PetLand.
Industry Forecast
Pet & Pet Supplies Stores Industry Growth
Recent Developments
Sep 30, 2024 - Sales, Labor Costs Up
- Sales for miscellaneous store retailers, including pet supplies stores, were up 1% in June 2024 compared to a year ago and were down 5.3% from the previous month, according to the Census Bureau. Employment for pet and pet supplies retailers rose 0.7% in July 2024 compared to a year ago, according to the Bureau of Labor Statistics. Average wages for nonsupervisory employees at pet and pet supplies retailers increased 5.6% in July 2024 year over year, reaching $21.20 per hour, per the BLS. In addition, consumer spending levels have been consistently higher through the first six months of 2024, compared to year-ago levels, according to personal consumption expenditures data from the Bureau of Economic Analysis.
- Some 85% of pet owners in the US say inflation is making ownership more expensive, and almost 40% of pet owners have gone into debt for their pets, according to a new survey by Lending Tree in Pet Business. Pet costs becoming more expensive are pet food (76%), vet services (56%), and necessary supplies (40%), per the survey. When asked if they have gone into debt for their pets, 37% of pet owners say they have, with a medical emergency being the most common reason. The high costs of owning a pet have caused nearly a quarter of Americans to consider going petless, and almost 40% say they wouldn’t own another pet. Twelve percent of Americans say they have surrendered a pet due to no longer being able to afford to care for it.
- New Circana data shows that private label pet product sales grew 5.8% in the year ending June 16, 2024, according to Pet Product News. The Circana data provided to the Private Label Manufacturers Association (PLMA) showed that other product departments with the most growth during the period were beauty (up 10%), liquor (up 8.8%), general food (up 6.9%), and home care (up 6.8%). For the first six months of 2024, store brands reached highs in both unit and dollar shares compared to a year ago, reaching a 22.9% and 20.4% share respectively. Total store brand sales were $121 billion for the six months, up 2.3%, while national brand sales were $472 billion during the period, a gain of 1.1%.
- Omnichannel options remain popular with retailers, with high adoption rates of buy online, pick up in store (BOPIS) (78.3%) and in-store stock statuses (65.4%) by retail chains in the Top 1000, according to the 2024 Omnichannel Report from Digital Commerce 360. One option losing some overall traction is curbside pickup, which has fallen to 25.3% usage by the Top 1000 merchants compared to a high of 55.1% in 2021 during the pandemic. Large pet store chain Petco recently discussed its omnichannel approach during its Q1 2024 earnings call, per Pet Product News. Interim CEO Mike Mohan said the company was realigning its omnichannel delivery model to better service its stores and direct-to-customer fulfillment centers.
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