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.

Sep 29, 2026 - Pet Owners Protect Pet Spending: Poll

• An August 2026 AICPA survey suggests pet spending remains relatively resilient, providing support for pet supplies retailers even as household budgets tighten. Among US dog and cat owners, 69% said they would be more likely to cut spending on themselves than on their pets, while 62% maintain a dedicated pet budget. The survey also found that 95% view their pets as family members, reinforcing the priority many households place on pet-related purchases. AICPA cited AVMA data showing pet-owning households spend about $1,515 annually on pets, excluding acquisition costs. For pet supplies retailers, these results support steady demand for recurring necessities such as food, medication, grooming products, and other care items. However, budget-conscious shoppers may still trade down, seek promotions, or limit discretionary purchases such as toys, accessories, and premium products.
• Consumer confidence weakened in September 2026, pointing to more cautious spending at pet supply retailers, particularly on discretionary products. The University of Michigan’s Index of Consumer Sentiment fell 7.0% from August to 48.1, while its Current Economic Conditions Index declined 1.9% to 50.9 and Consumer Expectations Index dropped 10.1% to 46.3. Meanwhile, The Conference Board’s Consumer Confidence Index fell 6.7 points to 81.9. Its Present Situation Index declined to 109.3, while the Expectations Index fell for a third straight month to 63.6. With households increasingly concerned about prices and future finances, pet retailers could see more trading down, promotional shopping, and postponed purchases of toys, accessories, and premium products, while recurring demand for food, litter, and basic care supplies should remain comparatively resilient.
• Dog owners are continuing to spend 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.

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.