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
May 24, 2024 - Sales Up in March
- Sales of miscellaneous store retailers, which include pet and pet supply retailers, were up 7.1% in March 2024 compared to the previous year, according to the latest data from the Census Bureau. Employment for pet and pet supplies retailers was down 0.2% in March 2024 compared to the previous year, while wages were 5.5% higher than a year ago reaching $20.57 per hour, per the Bureau of Labor Statistics. Consumer spending levels were up for the second consecutive month, up 3.1% in March 2024 year over year and up 0.5% from the previous month, according to personal consumption expenditures data from the Bureau of Economic Analysis.
- 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.
- Consumer confidence levels fell in April 2024 from March 2024, marking a third consecutive month of weakness, according to data from The Conference Board. The Conference Board’s consumer confidence index was 97 in April 2024 from 103.1 in March 2024. According to Dana Peterson, Chief Economist at The Conference Board, “Confidence retreated further in April, reaching its lowest level since July 2022 as consumers became less positive about the current labor market situation, and more concerned about future business conditions, job availability, and income.” Peterson added that confidence declined among consumers of all age groups and for all income groups except those in the $25,000 to $49,999 range. Plans for vacations, home purchases, and large appliances decreased on a six-month basis.
- More than half of pet owners are worried about their pets experiencing boredom, and 44% worry about their pets having separation anxiety when leaving their pets alone for extended periods, according to a recent PetMeds survey conducted by OnePoll in dvm360. The top concerns expressed by pet owners include loneliness or boredom (52%), separation anxiety (44%), access to food and water (36%), health issues or emergencies (33%), pet escaping or getting lost (31%), destructive behavior (25%), and other people’s handling of the pet (14%). About 40% of survey respondents say they would take a pay cut or a lower salary to work from home with their pets. More than 60% would like additional support and guidance in understanding their pet’s health and behaviors, while 70% would be interested in trying telehealth services. Pet stores may want to promote a wide range of products that help pets with boredom and separation anxiety.
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