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Pet & Pet Supplies Stores
First Research, May 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US pet and pet supply store industry includes about 8,800 stores with combined annual revenue of about $12 billion. Major companies include PetSmart, PETCO Animal Supplies Stores, and Petland. The industry is concentrated: the 50 largest companies account for about 70 percent of revenue.
COMPETITIVE LANDSCAPE
Pet ownership drives demand, and spending generally resists economic cycles. Profitability for individual companies depends on the ability to generate store traffic and effective merchandising. Large companies offer low prices and wide selections of both products and services. Small companies compete effectively by serving a local market, selling unique products, offering specialized services, or providing pet expertise. The industry is labor-intensive, with annual revenue per employee of about $110,000. Revenue per employee for small, independent pet stores is significantly lower than for major chains. Competitors include grocery stores, warehouse clubs, mass merchandisers, Internet retailers, and some veterinary clinics.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major product segments include pet food, pet supplies, aquarium products and fish, and pets. Pet food accounts for 40 percent of sales, pet supplies for 40 percent, aquarium products and fish for 10 percent. Pets and pet care services each account for about 5 percent. The pet food segment primarily consists of dog and cat food. Pet supplies include pet toys, collars and leashes, cages and habitats, and vitamins and supplements. Types of pets sold include dogs, cats, fresh and saltwater fish, birds, reptiles, and small animals (mostly hamsters and...
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