Pet & Pet Supplies Stores

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.

Jul 29, 2026 - Pet Spending Shifts Toward Essentials

• Dog owners are protecting spending on essential pet products despite economic pressures, a positive sign for US pet supply retailers even as shoppers become more value conscious, according to APPA's 2026 Dog Report. Dog ownership grew 4% year over year to 71 million US households, while food remained a protected essential, accounting for 27% of pet spending, second only to veterinary care (29%). Consumers are increasingly balancing premium and budget products, with purchases of basic dog food rising 11%, supermarket purchases increasing 7%, and discount retailer purchases jumping 22% year over year. Demand is also shifting toward high-value, preventive care products, including dental care items, owned by 46% of dog owners, and dog wipes, where ownership more than doubled (+108%). While discretionary spending on treats and grooming softened, retailers offering value-priced essentials, multifunctional products, and preventive care items are well positioned to capture resilient consumer demand.
• Tractor Supply's decision to close more than one-third of its Petsense locations highlights ongoing pressure on underperforming pet retailers while reinforcing the industry's shift toward veterinary services and stronger-performing store formats, according to a PetFood Industry report. The company will close 75 of its 209 Petsense stores, citing negative cash flow at the affected locations, and record $71.7 million in impairment and related charges. Tractor Supply plans to reinvest the savings into its core retail business and its recently acquired VIP Petcare veterinary services operation, which provides clinics in 2,700 retail locations. For the broader US pet store industry, the move underscores the importance of operational efficiency, profitable store networks, and service-based offerings as consumer spending becomes more selective. Retailers with healthy store productivity, differentiated assortments, and value-added services such as veterinary care, grooming, and training are likely to be better positioned for long-term growth.
• Consumer confidence improved over the past two months, with June's Conference Board survey and the University of Michigan's preliminary July survey pointing to a gradually improving outlook for US pet supply stores as households become more optimistic about discretionary spending. The Conference Board's June Consumer Confidence Index edged up to 91.2, with the Present Situation Index declining to 116.4 as labor market perceptions softened, while the Expectations Index rose to 74.4 on improved views of business conditions and household incomes. The University of Michigan's preliminary July survey showed further gains, with the Index of Consumer Sentiment rising 9.9% to 54.4, the Current Economic Conditions Index increasing 15.1% to 54.9, and the Index of Consumer Expectations climbing 6.5% to 54.0. Improving consumer confidence could support spending on pet food, toys, treats, and other discretionary pet products, although elevated inflation expectations may keep shoppers focused on value and promotions.
• Strong demand for premium pet nutrition products is creating growth opportunities for US pet supply retailers, particularly those offering high-end, functional, and veterinarian-recommended dog food, according to a Pet Age report based on Future Market Insights data. The global dog food market is projected to grow from $54.3 billion in 2026 to $97.4 billion by 2036, driven by pet humanization, premium feeding trends, and demand for life-stage-specific nutrition. The report notes that pet stores are expected to account for 35.4% of dog food sales in 2026, reflecting consumers' preference for specialist retail guidance and premium product selection. For US pet supplies retailers, these trends support higher-margin sales and increased customer loyalty, although rising competition, raw material cost volatility, and supply chain requirements could pressure profitability.

Industry size & Structure

A typical pet store operates out of a single location, employs 27 workers, and generates about $4.7 million annually.

• The pet and pet supply retailing industry consists of about 5,100 companies that employ 136,100 workers and generate about $24.3 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.