Pet & Pet Supplies Stores NAICS 459910

May 29, 2025 - Slower Growth Expected

• Sales for the US pet and pet supplies retailers industry are projected to grow at a 2.01% CAGR from 2025 to 2029, slower than the expected growth of the overall economy, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The retail and wholesale sectors are driven by consumer spending, along with expenditure by businesses and the government. Consumer sentiment is expected to improve in the forecast period, which bodes well for the sector. The forecast said retail spending could soften with the growth of spending on consumer services. A factor that may limit consumer spending is higher tariffs on consumer goods. Lower inflation supports a moderate increase of real disposable income by about 2% in 2025 and 1.9% in 2026. Real income could suffer if prices rise due to tariff implementation.
• According to a new report in Retail Dive, the retail sector had 64,319 job cuts in the first four months of 2025, a nearly 300% increase year over year, and was the second highest industry for job cuts. The Challenger, Gray & Christmas report found retail job cuts were up almost 80% year over year in April 2025, reaching 7,235. According to Andrew Challenger, an SVP at the consulting firm, “Generally, companies are citing the economy and new technology. Employers are slow to hire and limiting hiring plans as they wait and see what will happen with trade, supply chain, and consumer spending.” The US lost 603,000 jobs in total across all industries, the most since 2020, when over one million job cuts occurred. According to the report, nearly half of the cuts in the first four months were attributed to job eliminations by the Department of Government Efficiency (DOGE).

• According to Rover’s “True Cost of Pet Parenthood” report in USA Today, more than half of pet owners surveyed said they are concerned that tariffs will increase the cost of having a pet. With inflation and newly enacted or proposed tariffs, Rover estimates consumers will spend 11% more on veterinary fees, 183% more on pet cleaning supplies, 20% more on grooming supplies and 85% more on treats and chews in 2025. Nearly 70% of pet owners said pet food and treats account for the majority of their monthly pet budget, and 34% said pet spending would be one of the last categories they would cut if their budget were tight. A third of pet owners said they would cut spending on a category like groceries or entertainment to ensure they could afford their pet’s needs.
• Pet spending may take a hit as consumer sentiment, an indicator of discretionary spending, continues to fall in large part due to tariff uncertainty and an expectation of higher prices, according to two major indicators. The final index of consumer sentiment from the University of Michigan dropped 8% in April 2025 from the previous month, according to CFO Dive. An index measuring consumers’ expectations for the future fell nearly a third since January, the steepest three-month percentage decline since the 1990 recession. According to survey director Joanne Hsu, “Consumers perceived risks to multiple aspects of the economy, in large part due to ongoing uncertainty around trade policy and the potential for a resurgence of inflation looming ahead.” The Consumer Confidence Index declined by 7.9 points in April 2024, compared to the previous month. Consumer confidence levels have fallen for five consecutive months, reaching levels not seen since the beginning of the COVID pandemic, according to The Conference Board, which publishes the monthly index.