Pet Stores in The US Industry Report PDF

WWW.IBISWORLD.
COM Pet Stores in the USDecember 2019 1
Puppy love: Competition from online retailers and

mass merchandisers will limit industry growth
IBISWorld Industry Report 45391

Pet Stores in the US
December 2019 Thi Le
2 About this Industry 16 International Trade 29 Revenue Volatility

2 Industry Definition 17 Business Locations 30 Regulation and Policy
2 Main Activities 31 Industry Assistance
2 Similar Industries 19 Competitive Landscape
2 Additional Resources 19 Market Share Concentration 32 Key Statistics
19 Key Success Factors 32 Industry Data
3 Industry at a Glance 20 Cost Structure Benchmarks 32 Annual Change
22 Basis of Competition 32 Key Ratios
4 Industry Performance 22 Barriers to Entry 33 Industry Financial Ratios
4 Executive Summary 23 Industry Globalization
4 Key External Drivers 34 Jargon & Glossary
6 Current Performance 24 Major Companies
8 Industry Outlook 24 PetSmart Inc.
10 Industry Life Cycle 25 Petco Animal Supplies Inc.
26 Pet Retail Brands US Holdings LLC
12 Products and Markets 27 Pet Supplies Plus
12 Supply Chain
12 Products and Services 28 Operating Conditions
13 Demand Determinants 28 Capital Intensity
14 Major Markets 29 Technology and Systems
www.ibisworld.com | 1-800-330-3772 | info @ibisworld.com

WWW.IBISWORLD.COM Pet Stores in the USDecember 2019 2
About this Industry
Industry Definition Pet stores sell a variety of pets, including shampoos, medication, toys, pet
dogs, cats, fish and birds. Stores also sell containers, dog kennels and cat furniture.
pet foods and pet supplies, such as Some stores also offer pet services, such
collars, leashes, health and beauty aids, as grooming and training.
Main Activities The primary activities of this industry are

Retailing pets
Retailing pet food
Retailing pet supplies
The major products and services in this industry are

Live animals
Pet supplies
Pet food
Pet services
Other
Similar Industries 54194 Veterinary Services in the US

Operators in this industry provide veterinary services.
81291 Pet Grooming & Boarding in the US

Operators in this industry provide pet grooming and boarding services.
45411a E-Commerce & Online Auctions in the US

Operators in this industry retail pet foods and pet supplies via the internet.
45411b Mail Order in the US

Operators in this industry retail pet foods and pet supplies via mail order or catalogs.
Additional Resources For additional information on this industry

www.americanpetproducts.org
American Pet Products Association
www.petage.com
Pet Age
www.petbusiness.com
Pet Business
www.humanesociety.org
The Humane Society of the United States
WWW.IBISWORLD.COM Pet Stores in the US December 2019 3
Industry at a Glance
Pet Stores in 2019
Key Statistics Revenue Annual Growth 14–19 Annual Growth 19–24

Snapshot
$21.1bn 4.3% 3.2%
Profit Wages Businesses
$905.7m $2.9bn 13,925

Revenue vs. employment growth Number of pets (cats and dogs)
Market Share
PetSmart Inc. 8 200
33.7%
6
190
Petco Animal
4
% change
Supplies Inc.
Million
180
15.0% 2
170
0
-2 160
Year 11 13 15 17 19 21 23 25 Year 11 13 15 17 19 21 23 25
Revenue Employment
SOURCE: WWW.IBISWORLD.COM
p. 24
Products and services segmentation (2019)
Key External Drivers 1.3%

Other 4.7%
Number of pets 7.7% Live animals
Pet services
(cats and dogs)
Per capita disposable
income
Demand from online pet
food and pet supply sales
Number of households
45.7%
Pet food
40.6%
Pet supplies
p. 4
Industry Structure Life Cycle Stage Growth Regulation Level Medium

Revenue Volatility Low Technology Change Medium
Capital Intensity Low Barriers to Entry Medium
Industry Assistance None Industry Globalization Low
Concentration Level Medium Competition Level High
FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 32
Industry Performance
Executive Summary | Key External Drivers | Current Performance
Industry Outlook | Life Cycle Stage
Executive Summary The Pet Stores industry has prospered through rising disposable income levels.
over the five years to 2019 due to Over the past five years, per capita
improvements in household finances and disposable income has improved at an
rising pet ownership among millennials. annualized rate of 2.4%, contributing to
Moreover, pet parents have increasingly the splurge on industry products by pet
lavished their pets with premium food owners. Moreover, pet owners have
products, designer pet accessories and gradually shifted preferences to higher-
luxury grooming services. The industry quality organic, gluten-free and grain-
has expanded strongly during the five- free pet foods and luxury pet therapy
year period despite mounting sessions. These positive trends, combined
competition from supermarkets, mass with demographic shifts in favor of
merchandisers and online retailers that industry growth, have translated to better
offer similar products at greater profit during the period. However,
convenience and competitive prices. industry growth has also induced new
entrants to enter the market, although
they only make up a negligible share of
The
industry has expanded strongly despite industry revenue.
mounting competition from supermarkets, Over the five years to 2024, the Pet
Stores industry’s growth is anticipated
mass merchandisers and online retailers to remain robust, albeit at a slower rate.
Despite the economy being expected to
Traditional brick-and-mortar continue moving in a favorable
establishments have successfully direction, competition from online
positioned themselves as pioneers and retailers, mass merchandisers and
exclusive providers of high-quality food discount department stores will be more
and service offerings, such as grooming vigorous, limiting the industry’s growth.
or day care. IBISWorld expects industry However, an aging population is
revenue to rise an annualized 4.3% to expected to contribute to a higher
$21.1 billion over the five years to 2019. demand for pets and pet-related
In 2019 alone, industry revenue is products over the next five years as older
expected to grow 4.0%. consumers adopt pets to fulfill their
Since pets are viewed as family needs of companionship. As a result,
members, favorable economic conditions industry revenue is forecast to rise at an
have enabled pet owners to increase annualized rate of 3.2% to $24.7 billion
spending on the industry’s products over the five years to 2024.
Key External Drivers Number of pets (cats and dogs) representing a potential opportunity for
As households adopt more cats and dogs, the industry.
demand for pet-related goods, such as
foods, medicines, accessories and Per capita disposable income
services increases. According to the Consumers increasingly perceive pets as
American Pet Product Association’s members of their family, meaning
National Pet Owners Survey, an average selected products for pets can be
dog or cat owner spends between considered as nondiscretionary. A
$200.00 and $300.00 annually on food decrease in disposable income has a
for their pet. The number of pets is minor effect on demand for the industry’s
expected to increase in 2019, products because households typically
Key External Drivers reduce spending on other household and supply sales will likely decrease
continued leisure products before cutting down on demand for traditional brick-and-
pet food. A rise in per capita disposable mortar stores, suppressing industry
income, however, increases the revenue. Demand from online pet food
propensity for households to purchase and pet supply sales is expected to rise
greater quantities or more premium in 2019, posing a potential threat to
items. Per capita disposable income is the industry.
expected to increase in 2019.
Number of households
Demand from online pet food According to the American Pet Products
and pet supply sales Association’s most recent National Pet
Online shopping poses a direct threat Owners Survey, 65.0% of US households
to traditional industry retailers. Many own a pet. Consequently, an increase in
online retailers offer similar products the number of households will likely
to brick-and-mortar pet stores, but at increase the number of pets in the United
lower prices and the convenience of States, supporting industry demand. The
doorstep shipping. An increase in number of households is expected to
demand from online pet food and pet increase in 2019.
Number of pets (cats and dogs) Per capita disposable income
200 4
190 2
% change
Million
180 0
170 -2
160 -4
Year 11 13 15 17 19 21 23 25 Year 14 16 18 20 22 24 26
Current The Pet Stores industry is anticipated to

flourish over the five years to 2019, Industry revenue
Performance benefiting from the growing number of pets
8
and an enhancement in household finances.
Operators in the Pet Stores industry engage 6
in retailing domestic pets, pet foods,
supplies and services. Understanding pet 4
% change
parents’ desire to pamper their pets,
industry operators in recent years have 2
increasingly offered a wide array of

0
innovative, specialized and premium
products and services. IBISWorld expects -2
industry revenue to increase at an Year 11 13 15 17 19 21 23 25
annualized rate of 4.3% to $21.1 billion over
the five years to 2019, with a 4.0% growth in SOURCE: WWW.IBISWORLD.COM
2019 alone.
Strong demand for high-quality products products, branded pet supplies and
from millennials pet parents has supported complementary services particularly have
industry profit during the five-year period. pushed up profitability because they
Sales of premium pet food, organic typically have higher mark-ups.
Pets and products The lower-than-natural unemployment pet, which is equivalent to 84.9 million
rate has somewhat tightened the labor households. Most notably, the largest
markets as corporations demand more pet-owner group are millennials. Moreover,
employees to keep up with operations. Generation Z pet owners have also started
However, as the number of job openings to show strong growth.
exceeds that of the unemployed individuals Besides, current demographic trends
in the labor market, it eventually pushes up also support the growth of pet ownership.
wage levels since companies are willing to In recent years, young couples have
pay more to quickly fill up the empty roles. delayed getting married due to greater
This, in turn, leads to an increase in the emphasis on their careers. Therefore, they
general levels of wages and disposable are inclined to adopt pets to better prepare
income. Rising per capita disposable themselves before starting a family.
income at an annualized rate of 2.4% Nonetheless, owning a pet helps fulfill the
during the five-year period has contributed sense of having a family not only for
to a growing number of millennials being couples but also for individuals and elders.
able to afford to move out and live Over the five years to 2019, the number of
independently. The majority of them, in pets (cats and dogs) is projected to rise at
turn, adopt pets to fulfill companionship an annualized rate of 1.8%, translating to
needs. Therefore, an uptick in the number increased demand for pet products and
of households at an annualized rate of 0.9% services. Overall, steady income streams
during the five-year period has driven up also enable pet parents to spend more
demand for pets and pet-related products. confidently on their pets. In particular,
According to the 2019-2020 National Pet consumer spending has strengthened at an
Owners Survey published by the American annualized rate of 2.9% over the five years
Pet Products Association (APPA), an to 2019, contributing to the spending spree
estimated 67.0% of US households own a of pet owners during the five-year period.
Industry expansion Traditional pet stores are generally small-

scale and independently owned with Wagesare expected to
more than half of industry operators increase as a percentage of
employing fewer than 10 workers.
Therefore, small operators within the revenue
industry simultaneously experienced
accumulated competition both from expenses. Specifically, increasing demand
internal big-box retailers and external for discretionary pet services such as
players such as mass merchandisers, grooming, training and boarding has
supermarkets and online retailers. encouraged industry operators to employ
However, they are still able to profit from more workers to provide these services.
catering to a specific niche market within However, these services are unlikely to be
a regional area. Therefore, the automated and require a greater degree of
anticipated expansion of the Pet Stores skilled labor to perform. Consequently,
industry has induced more players to wages’ share of revenue is expected to
enter the market. Over the five years to increase to 14.0% in 2019. Fortunately,
2019, the number of enterprises is this increase is partially offset by a decline
expected to grow at an annualized rate of in other expenses including rent and
1.3%, totaling 13,925 companies. utilities. As a result, profit, measured as
Wages are expected to increase at an earnings before interest and taxes, is
annualized rate of 4.5% to $2.9 billion in expected to reach 4.3% of total industry
2019, depicting the increase in operations’ revenue in 2019, up from 4.1% in 2014.
Mounting In recent years, supermarkets, discount associated with shopping at physical

competitions from department stores and mass stores. In particular, many e-commerce
merchandisers have lured customers retailers are increasingly offering a
external players
away from specialty pet stores by offering two-day delivery option, significantly
competitively priced products in addition reducing the wait time associated with
to the convenience of one-stop shopping. traditional online shopping.
These stores enable consumers to shop However, traditional industry retailers
for a wide range of household products, are partly shielded from vigorous price
including pet supplies, in one location. competitions through the sales of
Time-strapped consumers turned to exclusive premium pet products and
these types of stores to streamline and complementary pet services. This
simplify shopping errands. Meanwhile, protection stems from manufacturers’
mass merchandisers specialized in restrictions on ultra-premium pet
offering lower prices for frugal consumers products, selling only to specialty pet
due to their large purchasing power. stores. Such restrictions have aided
Moreover, many consumers opt for traditional retailers in targeting high-end
online retailers to reduce traveling time markets over the past five years.
Industry The Pet Stores industry will continue to

capture more consumer dollars from pet
industry revenue is projected to increase at
an annualized rate of 3.2% to $24.7 billion
Outlook owners over the five years to 2024 as pets over the five years to 2024. Despite this
are increasingly treated as family members. anticipated growth, traditional brick-and-
In addition to rising pet ownership, mortar operators will have to struggle with
improving economic conditions will boost mounting pricing pressures from online
consumer spending on premium pet- retailers, mass merchandisers and discount
related products and services. As a result, department stores.
Pet ownership to grow The number of pets is the primary driver of

demand for the industry. In particular, a rise A
rise in pet ownership will
in pet ownership will lead to higher demand lead to higher demand for
for both discretionary and nondiscretionary
products and services, such as food, treats industry products
and toys. To the industry’s benefit, demand
for pets is expected to rise over the five years wages is expected to catch up with revenue
to 2024, driven by nonfamily households growth. Wages are expected to rise at an
and an aging population. IBISWorld annualized rate of 3.2% to $3.4 billion over
projects the number of pets (cats and dogs) the next five years. Moreover, intense price
will increase at an annualized rate of 0.5% competition is also one of the contributing
over the next five years, contributing to the factors that suppress profit growth.
industry’s growing revenue. Furthermore, expected industry expansion
Moreover, the rising acceptance of will likely continue attracting new entrants
higher-margin premium pet products and to the industry. The number of enterprises
services is expected to lift profit over the will continue to grow despite existing high
next five years. However, the industry’s competition from major players. The
average profit margin, measured as earnings number of enterprises is expected to rise at
before interest and taxes, is expected to an annualized rate of 2.4% to 15,714
stagnate at 4.3% in 2024 since the growth in companies over the five years to 2024.
Premium products will According to the 2019-2020 National Pet period, indirectly reducing the degree of
become popular Owners Survey published by the price competition that they have endured
American Pet Products Association from external market players.
(APPA), most frequently purchased pet With improving economic conditions,
food by US pet owners are premium, demand for pet services is expected to
generic and natural, respectively. continue rising. Over the past five years,
Therefore, IBISWorld expects natural pet services accounted for a smaller share
and organic foods and treats will gain of industry revenue. However, the pet
more popularity over the next five years, pampering trend will likely boost demand
as households increasingly place a higher for this segment as per capita disposable
emphasis on pets’ diets to improve pets’ income is expected to grow an annualized
health. According to the research 1.9% over the five years to 2024. With
company Mintel Group Ltd., the unemployment expected to remain low
nutritional value is among the top over the next five years, more pet parents
reasons owners cite for choosing pet will increase their spending to pamper pets
food. Therefore, these exclusive high- as consumer spending is expected to grow
margin products are expected to benefit at an annualized rate of 2.0% during the
industry operators during the outlook same period.
Changing Despite favorable economic

competition conditions, competition from Changing demographics
supermarkets and mass merchandisers
is expected to remain tough for generic
will boost industry growth
and mass-market pet foods and
supplies, such as dry pet food and cat positioning themselves apart from
litter. Since these products involve other stores.
little or no differentiation among Changing demographics in the domestic
brands, price-conscious consumers population will also boost industry growth
will likely continue shopping at large over the next five years. In particular, a
retailers due to discounted prices and growing share of the baby-boomer
added convenience. However, the population that is increasingly crossing the
increasing acceptance of exclusive retiring threshold will increase demand for
niche pet products will help partly pets and pet-related products. As retired
diversify the existing price baby boomers are not occupied by full-time
competition. Since almost half the jobs, they tend to adopt pets or place higher
industry consists of a large number of emphasis on pampering pets if they already
small-scale stores, niche product own them. Therefore, this demographic
marketing will become more vital will likely drive up industry revenue over
because it assists industry operators in the five years to 2024.
Life Cycle Stage The industry’s contribution to the
economy is expected to grow
Product innovation and services are improving
Pet ownership is continuing to rise steadily,
expanding the industry’s target market
Industry Life Cycle The Pet Stores industry is in the growth Over the five years to 2019, the
stage of its life cycle. Industry valued industry posted strong sales driven by
added (IVA), which measures an pet owners increasingly humanizing
This industry industry’s contribution to the US pets. Consequently, more products and
is G
rowing economy, is expected to increase at an services emerged in this industry to
annualized rate of 4.1% over the 10 years cater to this trend. For example, more
to 2024. In comparison, GDP is projected pet stores have started offering premium
to grow at an annualized rate of 2.2% pet food and treats in addition to
during the same period. services such as grooming, training,
The number of enterprises has grown walking and full-service boarding. As the
at an annualized rate of 1.9% during the industry is made up of retailers
10-year period. Prospective growth in specializing in pet supplies and pet food,
conjunction with low start-up costs has the industry’s main threat comes from
encouraged new entrants to continue large-scale supermarkets, mass
joining the industry even though they are merchandisers and discount retailers
generally small scale and cater to a such as Walmart Inc. and Costco
specific geographic area. Conversely, the Corporation. Online retailers also pose
industry is characterized by increasing an increasing threat as more tech-savvy
new product introductions such as individuals opt for online shopping to
organic, human-grade pet food and save time and money. In the long run,
electronic pet equipment and gadgets. both forces pressure industry prospects
The continuous growth of the customer as many small-scale retailers will not be
base has contributed significantly to the able to compete with the economies of
industry’s growth over the past 10 years. scale and extensive distribution
As millennials are now living networks these retailers own. Specialty
independently and earn a steady income, pet stores will likely further diversify
they are more willing to increase their into services and exclusive pet food
spending on pets. brands to stay competitive.
Products & Markets

Supply Chain | Products and Services | Demand Determinants
Major Markets | International Trade | Business Locations
Supply Chain KEY BUYING INDUSTRIES

99 Consumers in the US
The Pet Stores industry relies on consumers to purchase pet products and to use industry
services.
KEY SELLING INDUSTRIES

31111 Animal Food Production in the US
This industry supplies pet stores with a vast array of pet food.
33993 Toy, Doll & Game Manufacturing in the US
This industry supplies pet toys and accessories to industry operators.
54194 Veterinary Services in the US
This industry provides veterinary care services such as vaccinations to industry operators.
Products and Services Products and services segmentation (2019)
1.3%
7.7% Other 4.7%
Live animals
Pet services
45.7%
Pet food
40.6%
Pet supplies
Total $21.1bn SOURCE: WWW.IBISWORLD.COM
Pet food obese animals, specialized formulas for

Since food is a necessity, pet food makes sensitive stomachs and freshly baked
up the largest product segment for the cakes and cookies as treats. This segment
industry. This segment covers a wide experiences the highest degree of
range of products such as dry and wet competition from both online retailers
food for dogs and cats, bird feed, crickets and mass merchandisers. Consequently,
and worms for reptiles and other treats the segment’s share of revenue declined
and supplements for several different slightly over the past five years,
household pets. Over the past five years, accounting for an estimated 45.7% of
retailers increasingly introduced all- total revenue in 2019.
natural and organic food products. These
premium pet foods tend to be priced Pet supplies
higher, enabling industry operators to Products in this segment include over-
earn larger markups. Examples of the-counter medicines, food bowls,
premium pet food include raw diets for collars and leashes, pet clothing, brushes
dog and cat foods, weight control food for and combs, shovels and scoopers, cat
Products & Markets
Products and Services litter, cages birds and reptiles, travel family members, demand for specialty
continued carriers and other various accessories for pet services also increased.
pets. During the five-year period, this
segment’s share of revenue increased due Live animals
to the pet parenting trend, in which pet Live animals are the industry’s smallest
owners treated their pets as family segment, accounting for an estimated
members and started supplying pets with 4.7% of total industry revenue in 2019.
complementary products. This segment This product segment is minor because a
accounts for an estimated 40.6% of total pet is normally a one-off purchase, while
industry revenue in 2019. Pet supplies products in other segments, such as pet
and accessories sold by industry retailers supplies and pet foods are repeated
also encounter increasing competition purchases. Furthermore, major players in
not only from mass merchandisers but the industry only sell small animals such
also smaller retail outlets because there as fishes, reptiles, rabbits, hamsters and
are no regulations that limit the sale of birds and partner with local pet programs
pet supplies. for cat and dog adoptions. Moreover, as
many online adoption platforms have
Services grown in popularity in the past five years,
Pet services were the fastest-growing sales of live animals are expected to
product segment for the industry over the decline as a share of industry revenue
past five years, reaching an estimated over the five years to 2019.
7.7% of total industry revenue in 2019.
Pet services include full-service Other
grooming, haircuts, baths, toenail Operators in the Pets Stores industry also
trimming and tooth brushing. This retail a variety of products such as books,
segment excludes veterinary services. sporting goods and recreational
Other services may include activities such equipment and lawn and garden
as training, boarding and day camps. equipment and supplies. However, these
Greater interest in pet pampering drove products only account for a negligible
much of the rise of this segment. As more share of total industry revenue,
pet owners consider their animals as accounting for an estimated 1.3% in 2019.
Demand Demand for pets and pet supplies is because pet owners nowadays are
Determinants affected by the rate of pet ownership, treating pets as their family members.
food and supply prices, household Thus, they are more willing to purchase
income and demographics. higher quality pet food and supplies in
addition to more complementary services
Pet ownership for their pets.
Pet ownership is the main driver for Pet
Stores industry demand by definition. As Income
pet ownership increases, it leads to Households with higher incomes are
higher demand for the industry’s primary better able to afford discretionary items
products such as food and treats because and services sold at pet stores, leading to
these goods are daily necessities for the higher demand for high-quality pet foods
well-being of pets. Pet ownership is on and associated products. Over the past
the rise, facilitating industry growth. five years, pet-owning households with
Additionally, industry growth is also high disposable income were the main
Products & Markets
Demand customers for luxury and trendy pet are getting married at a slow pace, pets
Determinants products, including premium pet food help fulfill the needs of young couples
and designer pet toys. In addition, those that are not ready to have babies but still
continued
with higher incomes tend to travel desire a sense of growing a family.
frequently, so they are more likely to use However, this trend is getting popular
pet boarding services or purchase not only for couples but also for
products enabling pets to accompany individuals who live independently but
them while traveling. prefer companionships.
Demographics and lifestyle Rising online competition

Changes in demographics and lifestyle of Even though demand for pets and
households are important determinants pet-related products is expected to boom,
of demand. Frequent relocation or longer industry operators are enduring a higher
work hours may reduce a household’s degree of competition from online
willingness to own a pet. For instance, competitors. Online competitors such as
households living in apartments are less Amazon.com Inc. are progressively
likely to have pets since many apartments introducing their in-house brands at
do not permit pets. The aging population, competitive prices. Moreover, the
however, may increase demand for pets. flexibility and popularity of online
The second-largest pet owner group shopping are expected to hinder demand
includes older individuals of the baby- for the industry’s products as tech-savvy
boomer generation, which is increasingly customers are lured away from
entering the retiring threshold. traditional brick-and-mortar stores.
Therefore, without a full-time job, they Online operators generally carry a larger
will have more spare time and endure variety of brands, offer fast-shipping
empty nest syndrome as children have options and provide timely customer
moved out, the need for pets is high. services. Over the past five years, demand
Thus, spending on pets from baby from online pet food and pet supply sales
boomers is expected to surge accordingly has increased strongly at an annualized
over the next five years. On top of that, rate of 12.0%, limiting the potential of the
since young adults in the United States industry’s growth.
Major Markets Consumers aged between 45 and 64 seek for pet companions to fill the space
The largest market for the Pet Stores in households after children leave home.
industry includes consumers between the As a result, this figure is forecasted to
ages of 45 and 64 who account for an increase over the next five years as more
estimated 43.5% of revenue in 2019. baby boomers will enter this age range.
Consumers in this age group are likely
the key financial providers of the Consumers aged between 25 and 44
household and, therefore, responsible for Consumers aged between 25 and 44
household pet expenditures. typically have families or children who
Furthermore, consumers in this product wish to have family pets. Given how pet
market are typically established in their companionship can benefit health and
careers and have steady income streams, behavioral development in children,
enabling them to spend generously on consumers in this age group often decide
pet supplies. It has also been suggested to add a pet to the family. According to
that older members of this age group the American Pet Products Association, a
Products & Markets
Major Markets Major market segmentation (2019)

continued
7.3%
Consumers under
25 years old
16.1%
43.5%
Consumers aged 65 and older
Consumers between 45 and

64 years old
33.1%
Consumers between 25 and 44 years old
Total $21.1bn SOURCE: WWW.IBISWORLD.COM
reported 38.0% of households with Consumers under 25 years old

children under 18 years old own at least Consumers in this age group are
one pet. Consumers between the ages of generally children, teenagers and young
25 and 44 are estimated to account for adults. As they commonly have restricted
33.1% of the market in 2019. This or no income, they are not able to spend
demographic group accounts for a much on industry products. However,
growing share of industry revenue. they are one of the most influential
customer groups of industry operators.
Consumers aged 65 and older For instance, parents usually buy pets
Consumers who are older than 65 years old when their kids ask for, thus demand is
account for an estimated 16.1% of industry primarily derived from the younger
revenue in 2019. The younger members of customers of this age group. Despite they
this customer segment just enter their do not spend directly, they remain highly
retiring ages and generally live individually. important. Industry operators need to
Therefore, they tend to view pets as family cater to them carefully to trigger their
members and spend substantially on pets demand for pets and pet-related
since pets are adopted to replace their products. Nonetheless, demand from this
children or grandchildren who have moved age group has been stagnant over the
out. As they are prepared with retirement past five years as the number of children
funds, they will place more focus on younger than nine years old remained flat
pampering pets as compared with working during the same period. Moreover,
individuals. Consequently, this customer increasing interest in technology and
segment accounted for a remarkable share electronics products has shifted away
of industry revenue over the past five years demand from adolescents for pets and
and it is expected to continue to uptrend pets’ products. This consumer group is
over the next five years as more baby estimated to account for 7.3% of industry
boomers will cross the retiring threshold. revenue in 2019.
Products & Markets
International Trade International trade activity is accounted and supplies is not readily available,
for at the manufacturing level by as they are categorized into broad
convention. This domestic retail industry segments containing large numbers of
does not technically have imports or non-pet related products. Trends in pet
exports. Products and supplies in the Pet food trade provide some insight into
Stores industry, however, are imported trends regarding overall pet product
and exported at the manufacturing level, trade levels and are included in the
then sold in the domestic market. Precise Animal Food Production industry
export and import data on pet products (IBISWorld report 31111).
Products & Markets
Business Locations 2019
West
AK
0.2 New
England
ME
Great Mid- 0.6
Lakes Atlantic 1 2
NY 3
WA MT ND 7.3
5 4
3.1 0.2 MN
Rocky
0.3 1.5
WI
OR Mountains SD
0.2
Plains 1.7 MI
2.8
PA
4.4
6
7
1.9 ID IA OH 9 8
0.5 WY 3.7
0.2
NE
0.7
IL IN WV VA
3.8 1.7 2.9
West NV
0.4 0.3
KY
UT MO
1.0 NC
0.8
0.7 CO KS 1.6 2.7
2.7 0.8 TN
SC
Southeast
1.7
CA 1.3
12.9
OK AR GA
0.9 0.5 AL 2.4
AZ MS 0.9
2.5 NM
0.6 Southwest 0.5
TX LA
0.8 FL
6.7 8.2
West Establishments (%)
HI Less than 3%
0.3 Additional States (as marked on map) 3% to less than 10%
1 VT 2 NH 3 MA 4 RI 10% to less than 20%
0.3 0.7 2.3 0.5 20% or more
5 CT 6 NJ 7 DE 8 MD 9 DC
1.6 3.3 0.6 1.8 0.2
Products & Markets
Business Locations Establishments in the Pet Stores industry

Distribution of establishments vs. population
are primarily located in the Southeast, West,
Mid-Atlantic, Great Lakes and Southwest
30
regions of the United States. Industry
locations are based primarily on the number
of households in each region, in addition to 20
the median income level of households.
%
Southeast 10
The Southeast region holds the highest
number of industry establishments with
23.0% of total pet stores in 2019. The 0
region itself is the most populated in the
West
Great Lakes
Mid-Atlantic
New England
Plains
Rocky Mountains
Southeast
Southwest
United States with one-quarter of the
nation’s population. Given the higher
proportion of households, there is greater
demand for industry retailers. As industry Establishments
operators engage in retailing products, the Population
closer they are to downstream customers, SOURCE: WWW.IBISWORLD.COM
the higher the chance that they can make a

sale. It is because customers are not only York and Pennsylvania, which account for
influenced by price tags but also locations. a respective 7.3% and 4.4% of the
An establishment that is located further industry’s locations. These states have
away from town is at a disadvantage some of the most populous cities in the
compared with one that is situated in the United States due to large metropolitan
center of a town since a longer drive will centers. The region also has higher-than-
potentially deter customers from buying at average income levels. Given the number
that establishment. Within the Southeast of households within the region that earn
region, Florida has the highest number of a higher level of disposable income, they
pet stores at an estimated 8.2% of the are better able to afford to own and to
nation’s total establishments. pamper a pet.
West Great Lakes and the Southwest

The West has the second-highest proportion The Great Lakes region contains an
of pet stores in the country with an estimated 13.7% of total pet stores, followed
estimated 19.2% of industry establishments by the Southwest region at 10.7%. The Great
in 2019. California has the highest number Lakes region is also the fourth-most
of pet stores in the country at 12.9%. The populated in the nation with an estimated
primary reasons for the higher-than-average 14.5% of the total population, therefore
number of pet stores in the West are making it the fourth-most common
population density and income levels. The destination for industry establishments.
West holds 17.3% of the nation’s total Texas is the leading state within the
population. Furthermore, both California Southwest region, which holds an estimated
and Nevada have higher-than-average 6.7% of total industry establishments.
median incomes by state. Other small participating regions in the
industry include New England (6.0%), the
Mid-Atlantic Plains (5.5%) and the Rocky Mountains
The Mid-Atlantic region houses an (4.3%). These regions have smaller
estimated 17.6% of total pet stores in 2019. consumer markets, therefore limiting
The two most populated states are New demand for pet stores.
Competitive Landscape
Market Share Concentration | Key Success Factors | Cost Structure Benchmarks
Basis of Competition | Barriers to Entry | Industry Globalization
Market Share Nearly half the Pet Stores industry’s price-conscious and time-strapped
Concentration revenue comes from two specialty supply customers who place a high emphasis on
retailers, which are PetSmart Inc. prices and convenience. Consequently,
(PetSmart) and Petco Animal Supplies these stores are expected to grow at the
Level
Inc. (Petco). The remainder consists of expense of big-box retailers. In recent
Concentration in this family owned and regional stores, small years, big-box retailers are progressively
industry is M
edium franchises and smaller pet stores chains. putting more effort into promoting their
Despite the moderate degree of online presence. Moreover, the merger of
concentration, small operators are still regional pet store chains Pet
able to profit from serving niche markets Supermarket Inc. (Pet Supermarket) and
in their geographical locations, rarely Pet Valu Inc. (Pet Valu) to form Pet
expanding beyond those areas. Retail Brands US Holdings LLC in 2016
Over the five years to 2019, Petco has further consolidated the industry.
experienced a decline in its respective Prior to the event, Pet Supermarket
market share due to increasing specialized in serving the Southeastern
competition from mass merchandisers, market while Pet Valu mainly catered to
supermarkets and online retailers. customers in Canada and the East Coast
Despite big-box retailers can offer of the United States. Therefore, the
customers premium and exclusive pet strategic merger enabled the company to
products, the company still experience successfully expand its presence to more
high competition from mass areas, thus reaching more customers.
merchandisers and online retailers in the However, the pressure is left to small-
form of heavy discounts and promotions. scale retailers as now they have to
Acting as a one-stop shopping compete with both larger chains and
destination, mass merchandisers and online giants such as Amazon.com Inc.
online retailers are benefited from and Chewy Inc.
Key Success Factors Attractive product presentation as major shopping precincts, to maximize
To appeal to customers and encourage store traffic and sales.
purchases, eye-catching promotions and
IBISWorld identifies displays are essential for pet stores. Economies of scope
250 Key Success Successful operators need a range of the
Factors for a Experienced work force most popular pets and pet supplies at
business. The most It is important to employ a highly capable different levels of price and quality.
staff with clear knowledge of the pet Offering a wider variety of products will
important for this
industry to better assist customers and attract a larger customer base.
industry are: boost sales.
Effective quality control
Proximity to key markets Operators must ensure that pet services
Operators need to be located in high- are up to standards for each specific
traffic and high-visibility locations, such animal and breed.
Cost Structure Wages consist of a range of pet food and pet

Benchmarks Due to the labor-intensive nature of the supplies, including collars, leashes,
retail sector, wages are estimated to make medication, shampoos, dog kennels and
up the second-highest expense for pet pet toys, in addition to a range of pets,
store operators, accounting for an including dogs, cats, birds, fish, small
estimated 14.0% of total industry revenue animals and reptiles. Despite growing
in 2019. In pet stores, employees are demand, purchase expenses have
crucial to provide care for pets, maintain stagnated as a share of revenue over the
stock levels and provide customer service. past five years due to the increase in the
Furthermore, the added focus was placed number of imported products. As more
on labor over the five years to 2019 as pet industry products are manufactured
services have become one of the fastest- overseas, where labor and input costs are
growing sources of industry revenue. In relatively lower, it has translated to lower
particular, pet services such as grooming prices for the industry’s products in
and training require skilled labor to recent years.
perform, which implies higher wage levels
as compared with less-skilled workers. Profit
Profit, measured as earnings before
Purchases interest and taxes, is expected to account
Purchase costs have remained the for an estimated 4.3% of revenue in 2019,
single-largest expense for the industry, up from 4.1% in 2014. A growing pet
accounting for an estimated 55.7% of population and an increasing willingness
industry revenue in 2019. Purchases of pet owners to spend on pets,
Sector vs. Industry Costs
Average Costs of
all Industries in Industry Costs
sector (2019) (2019)
100
3.4 4.3 n Profit
8.9 n Wages
14.0 n Purchases
80 n Depreciation
n Marketing
n Rent & Utilities
n Other
Percentage of revenue
60
72.9 55.7
40
0.9 1.7
20
9.2
0.9 1.6
4.0
8.3 14.2
0
Cost Structure particularly on premium or high-margin magazines, radio and TV advertising.

Benchmarks products, have boosted profit for the Pet Moreover, increasing competition from
Stores industry over the past five years. external players is expected to
continued
Furthermore, pet stores increasingly encourage industry operators to invest
offer pet services, which typically have more heavily in advertising in the
higher profit and endure a lower degree coming years.
of price competition. It is important to
note, however, that actual levels of profit Rent
may vary considerably between industry Rent costs are expected to represent an
participants. For instance, major player estimated 7.8% of industry revenue in
PetSmart Inc. experiences a higher- 2019. Rent accounts for a noticeable
than-average profit margin because of share of industry revenue because
its purchasing power and economies of industry establishments generally
scope. Large volume purchases enable operate in high traffic areas, where rent
them to achieve lower purchase costs at is relatively higher. However, this cost
the wholesale level, then passing those has slightly declined over the past five
savings to end consumers in the form of years, down from 8.2% in 2014.
competitive prices. Consequently, they According to CoStar Group, a
can afford to have lower mark-ups and commercial real estate information
profit from larger sales volumes. provider, the slowdown in retail leasing
However, smaller players in this has put downward pressure on rent in
industry do not have such purchasing recent years, contributing to the decline
power which in turn pushing up their in rent’s share of revenue over the five
cost of goods sold per unit and causing years to 2019.
them to accept lower profit.
Utilities
Depreciation Utilities include the cost of natural gas,
Depreciation is expected to consume electricity, water and sewer. Utilities are
0.9% of revenue in 2019. Minimal estimated to account for a minor share
depreciation is typical for retail of industry revenue in 2019 at 1.4%. The
industries, which are very labor- fall in world crude oil prices has made
intensive and require minimal capital the general utility rates drop slightly
costs in operations. This figure is high since 2014.
compared with other retailing industries
because pet stores must acquire special Other
cages and tanks for animals in addition Operators incur other expenses
to shelving and cash registers for stores. including general administrative,
insurance, security costs. Other costs for
Marketing industry operators typically include
In 2019, companies invest an estimated licensing fees, legal expenses,
1.7% of revenue toward marketing and accounting services and staff training
advertising activities to generate traffic costs. Overall, all other expenses are
and boost sales. Major types of expected to account for the remaining
marketing include newspapers, 14.2% of industry revenue in 2019.
Basis of Competition Internal competition Mass merchandisers and discount retailers

Pet stores compete with each other based on typically do not sell ultra-premium pet
price, product variety, customer service, products because they are limited by
Level & Trend brand awareness, variety of pet services and manufacturers’ restrictions. However, they
ompetition
C in store location. Since product purchases are generally able to price mass-market pet
this industry is make up the majority of sales for pet stores, products more competitively than big-box
Highand the trend their main basis of competition is product retailers due to their ability to bulk purchase
range, quality and price. Large players such directly from manufacturers. And since not
is I ncreasing
as Petco Animal Supplies Inc. and PetSmart all consumers place a high value in premium
Inc. benefit from economies of scope and and exclusive pet brands, less expensive
can provide a variety of pet foods, pet mass-market pet products have lured
supplies and pet services with diverse price-conscious households away from
attributes across a range of prices, enabling traditional big-box retailers. Therefore, the
them to capture a larger pool of consumers increasing popularity of mass
with different budgets. Major players merchandisers and discount retailers has
generally benefit from bulk buying and dampened the industry growth over the past
producing their private label products at five years.
economies of scale, enabling them to sell at Further competition comes from the
lower prices but still maintain healthy profit E-commerce and Online Auctions industry
margins. Smaller stores are then pressured (IBISWorld report 45411a) and the Mail
to provide products at similar prices, which Order industry (45411b). In recent years,
result in lower profit margins because they there is a growing prevalence of online
are lack of such purchasing power. However, websites specifically for selling pet products,
smaller industry players position themselves including companies such as Amazon.com
by offering superior customer services and Inc. (Amazon) and Chewy Inc. Online
cater to the specific needs of niche markets shopping enables consumers to purchase
in their local areas. products without physically visiting a store,
thus significantly reduce their travel time.
External competition Moreover, online giant Amazon has also
Historically, supermarkets were the primary introduced its private label brand, Wag,
sellers of pet food products as they stock a directly competing with industry players in
wide variety of pet food and supplies and providing low-priced pet food. And as
bulk purchases generally enable them to tech-savvy and time-strapped individuals
offer lower prices than specialty retailers. In increasingly adopt online shopping as an
recent years, mounting competitions from alternative to traditional shopping methods,
mass merchandisers and discount retailers demand from online pet food and pet supply
such as Walmart and Costco have put sales has increased at an annualized rate of
additional pressure on industry players. 12.0% over the past five years.
Barriers to Entry Significant factors that can hinder a Government regulations, including
potential entrant from entering the Pet federal and state laws, regulate pet shops
Level & Trend Stores industry are a high level of and the sale of animals. For example, the
competition and regulations associated Pet Animals Act 1951 requires pet shops
arriers to Entry
B with this industry. Nevertheless, there to obtain a license in accordance with the
in this industry are are various niche markets available for act before opening. In addition, the
Mediumand S teady new players to occupy, specifically those Animal Welfare Act of 1966 dictates how
specializing in premium and innovative pets sold in pet stores must be
food, products and services. maintained. Pet shops need to address a
Barriers to Entry range of issues and receive licenses based

continued on federal and state requirements before Barriers to Entry checklist
permission to operate is granted. Competition High
Industry concentration can be another Concentration Medium
barrier to potential entrants. Two Life Cycle Stage Growth
national retail chains in this industry Capital Intensity Low
account for nearly half of industry Technology Change Medium
revenue, leaving smaller players with the Regulation and Policy Medium
remaining portion. Although this Industry Assistance None
industry is highly fragmented, there is
intense price competition from mass SOURCE: WWW.IBISWORLD.COM
merchandisers, online operators and

catalog retailers, which may provide a directed toward marketing to build
barrier for new, independent retailers. In consumer interest and recognition. The
particular, established prices set by initial cost of establishing a retail outlet,
existing industry players pressure new in addition to purchasing inventory
market entrants to either obtain levels, may be a barrier for new entrants.
acceptable economies of scale levels or Specifically, high-visibility locations are
accept lower margins. Overall, opening a relatively expensive and harder to rent,
new pet store that meeting licensing forcing new small-scale players to incur a
standards is costly. Additionally, a higher start-up cost to gain a foothold in
significant share of funding may be those locations.
Industry The Pet Stores industry is composed of industry has a low level of globalization.
Globalization several small players. Many of the The industry’s largest player, PetSmart
smaller, independent pet supply retailers Inc. has a network of stores in Canada,
Level & Trend are family owned businesses that operate while Petco Animal Supplies Inc.
within a local or regional scope. In expanded to Mexico and Puerto Rico.
lobalization
G in this addition, the industry’s major companies However, international sales are still low
industry is L owand are domestically owned. Therefore, this relative to the United States.
the trend is S teady
Major Companies
PetSmart Inc. | Petco Animal Supplies Inc. | Other Companies
Major Players
(Market Share) Petco Animal Supplies Inc. 15.0%
51.3%
Other
PetSmart Inc. 33.7% SOURCE: WWW.IBISWORLD.COM
Player Performance Since its establishment in 1986, Phoenix- and litter, in addition to premium
based PetSmart Inc. (PetSmart) has products, many of which are not found in
become the top specialty retailer of pet supermarkets or mass merchandisers. Pet
PetSmart Inc. food and supplies. PetSmart operates supplies such as collars, leashes, health
Market Share: 33.7% more than 1,650 stores, typically located and beauty aids, shampoos, medication,
in regional shopping centers near other toys, pet carriers, dog kennels, cat
superstores and warehouse stores. The furniture, equestrian supplies, bird cages,
company employs more than 56,000 aquariums and filters make up the hard
people in the United States, Puerto Rico goods category. Pets sold by the company
and Canada. By offering more than 11,000 include fishes, birds, reptiles and other
pet products and providing various pet small pets. Larger animals, such as cats
services, PetSmart aims to provide a and dogs, are not sold in PetSmart stores.
one-stop shopping experience. In March However, they are available for adoption
2015, the company went private through through the PetSmart Charities’ Adopt a
an $8.7-billion buyout by BC Partners. In Pet Program, which was co-developed
2018, PetSmart generated $10.8 billion in with humane organizations. In 2016,
total revenue (latest data available). PetSmart acquired AllPaws, one of the
PetSmart generates revenue through largest online and mobile platforms for
the sale of merchandise and services. adopting pets.
Services include grooming and boarding In addition to selling merchandise,
while merchandise is categorized into PetSmart expanded its service offerings
consumables, hard goods and pets. to include in-store boarding facilities,
Consumables include pet foods, treats grooming services, obedience training,
PetSmart Inc. (US industry-specific segment) - financial performance*

Revenue Operating Income
Year** ($ million) (% change) ($ million) (% change)
2014-15 4,900.8 N/C 491.3 N/C
2015-16 5,039.7 2.8 502.4 2.3
2016-17 5,393.7 7.0 415.2 -17.4
2017-18 5,256.5 -2.5 425.7 2.5
2018-19 6,492.5 23.5 526.0 23.6
2019-20 7,091.1 9.2 574.8 9.3
*Estimates; **Fiscal year-end January 31

SOURCE: ANNUAL REPORT AND IBISWORLD
Major Companies
Player Performance day camp and full-service veterinary from PetSmart’s industry-specific US
continued services. PetSmart offers a complete pet operations to grow at an annualized rate
boarding and day-care service through of 7.7% to $7.1 billion over the five years
PetsHotel with 24-hour supervision, an to 2019. The declines in in-store traffic
on-site veterinarian, air-conditioned were partially offset by rising sales of
rooms and daily specialty treats. Nearly premium and natural food products and
200 PetSmart stores include PetsHotel increased sales from pet services. The
boarding facilities and Doggie Day Camps. company’s broad portfolio of premium
PetSmart also offers full-service veterinary pet food, natural pet food and pet
hospitals in more than 900 of its stores services has contributed to its growing
through a partnership with Banfield Pet market share over the past five years.
Hospital. In May 2017, PetSmart acquired Moreover, the company has been
the largest online retailer for pet food, successfully capitalized on pet
Chewy Inc., for $3.4 billion. humanizing trends, making it less
susceptible to external competitions.
Financial performance Consequently, PetSmart’s operating
As PetSmart is privately owned, the income is expected to increase at an
company’s financials are undisclosed. annualized rate of 3.2% to $574.8 million
Therefore, IBISWorld estimates revenue during the same period.
Player Performance Established in 1965, Petco Animal Rico and Mexico in 2012 and 2013,
Supplies Inc. (Petco) is the second-largest respectively. The company has also
pet supply specialty retailer in the United significantly expanded its online presence
Petco Animal States. The company is headquartered in through the acquisition of Drs. Foster
Supplies Inc. San Diego and operates an estimated and Smith Inc., a mail-order and
Market Share: 15.0% 1,516 Petco stores, including the smaller- e-commerce pet supply corporation, in
format Unleashed by Petco neighborhood 2014. The company then acquired
Industry Brand Names
shops and Pooch Hotel locations across another two companies in 2017,
Unleashed by Petco
the United States, Mexico and Puerto including Pupbox Inc., an online monthly
Rico. The company expanded to Puerto subscription service, and PetCoach Inc., a
Petco Animal Supplies Inc. (US industry-specific segment) - financial

performance*
Revenue Operating Income
Year** ($ million) (% change) ($ million) (% change)
2014-15 2,682.6 N/C 188.3 N/C
2015-16 2,718.5 1.3 158.0 -16.1
2016-17 2,786.5 2.5 141.0 -10.8
2017-18 2,819.9 1.2 159.6 13.2
2018-19 3,021.4 7.1 171.2 7.3
2019-20 3,163.6 4.7 179.5 4.8
*Estimates; **Year-end January 31

SOURCE: US SECURITIES AND EXCHANGE COMMISSION
Major Companies
Player Performance digital service that connects users to in 1999. Moreover, Petco has significantly
continued veterinarians. In August 2015, the expanded its smaller store chain,
company filed for an initial public Unleashed by Petco, which specializes in
offering (IPO) but withdrew its offering catering natural, organic and higher-end
in February 2016 following a $4.6 billion pet products to urban markets.
acquisition by the Canada Pension Plan
Investment Board and CVC Capital Financial performance
Partners. In 2018, the company Since Petco is private, there is no official
generated $4.5 billion in total company financial information available. IBISWorld
revenue and currently employs 26,000 estimates that Petco’s US revenue
people (latest data available). generated from brick-and-mortar stores
Petco stores carry up to 10,000 has increased at an annualized rate of
different pet-related items, including pet 3.4% to $3.2 billion over the five years to
food, collars, leashes, grooming products, 2019. Similar to PetSmart, strong sales of
toys, health and beauty aids, kennels and pet services were one of the company’s
pet houses. Similar to other industry main drivers of growth. As Petco shifts
participants, Petco offers a variety of focus to the smaller store model, the
grooming, veterinary and obedience company also concentrates on increasing
services for animals, but does not sell cats online presence through an acquisition
or dogs. Instead, the Think Adoption strategy. Between 2005 and 2015, online
First program is used in partnership with sales reportedly increased from 1.2% to
local animal welfare organizations. The 8.5% of total revenue, according to the
company also operates an independent company’s 2015 IPO filing (latest data
nonprofit organization, the Petco available). Conversely, Petco’s operating
Foundation, which has invested more income is expected to decline at an
than $175.0 million to support local annualized rate of 1.0% to $179.5 million
animal welfare groups since its inception during the five-year period.
Other Companies PetSmart Inc. and Petco Animal Supplies industry comprises several smaller-scale
Inc. are the top players in the Pet Stores and privately owned pet stores. In fact,
industry, accounting for nearly half total more than half all companies employ
industry revenue in 2019. Overall, the fewer than nine workers. Due to the
industry is characterized by a moderate fragmented nature of the industry, most
degree of concentration controlled by players do not individually account for a
these two retailers. The remainder of the considerable share of industry revenue.
Other Company Pet Retail Brands US Holdings LLC (Pet Retail Brands now operates as a parent
Performance Retail Brands) is a retailer chain of pets, organization of Pet Supermarket and
pet supplies and wellness products. The Pet Valu. The combined business
company was formerly known as Pet operates more than 1,054 stores in
Pet Retail Brands Supermarket Inc. (Pet Supermarket), North America, with stores primarily
US Holdings LLC founded in 1973 in Fort Lauderdale, FL. along the East Coast. The company
Market Share: 3.7% In July 2016, Pet Supermarket merged employs nearly 2,200 associates and
with Ontario-based Pet Valu Inc. (Pet sells more than 7,000 pet care
Valu) to form Pet Retail Brands. Pet products, including food, toys,
Major Companies
Other Company medicine and clothing, in addition to as value pet products and luxury pet
Performance small animals, such as hamsters, guinea items. IBISWorld estimates Pet Retail
pigs, rabbits and tropical fish. The Brands will generate $770.9 million in
continued
company also offers a range of high- industry-relevant revenue in 2019.
Other Company Founded in 1988 and based in Livonia, limited between an estimated 5,000.0
Performance MI, Pet Supplies Plus is a franchise and 6,000.0 square feet in size for
business with more than 459 stores smaller markets and between 7,000.0
across more than 33 states in 2019. Pet and 9,000.0 square feet in larger
Pet Supplies Plus Supplies Plus offers franchises to both metropolitan areas. The smaller store
Market Share: 2.3% single store owner-operators and area concept is designed to keep operating
developers that own several stores in a costs at minimum levels. As of 2018, the
designated market region. Pet Supplies company had 240 franchised locations,
Plus differentiates itself by providing and according to its report, a franchise
all-natural food products. In addition, it store on average earned $2.2 million
offers a range of pet services, such as annually in fiscal 2017 (latest data
grooming, self-service pet wash stations available). Overall, IBISWorld estimates
and adoptions. that Pet Supplies Plus will generate
Pet Supplies Plus stores are generally $481.8 million in industry-relevant
located in high-traffic areas and are revenue in 2019.
Operating Conditions
Capital Intensity | Technology & Systems | Revenue Volatility
Regulation & Policy | Industry Assistance
Capital Intensity The Pet Stores industry, similar to most

other retail industries, has a low level of Capital Intensity
Capital units per labor unit
capital intensity. For every dollar spent
Level
on wages, an estimated $0.06 is invested 0.5
The levelof capital in the store and equipment. Most capital
intensity is L ow costs are related to shelving, store, 0.4
computers, cashier equipment and other 0.3

equipment such as caging for animals,
which do not need frequent replacement. 0.2
Therefore, this industry is labor-intensive 0.1

because employees are needed to operate
and manage stores, provide customer 0.0
Economy Retail Trade Pet Stores
service and support, restock merchandise
and provide care for pets. Dotted line shows a high level of capital intensity
The level of capital intensity has SOURCE: WWW.IBISWORLD.COM
increased over the past five years,

reflecting increasing adoption of Supplies Plus incurred $20.0 million on
technology such as the POS system and the upgrading of its IT systems and POS
IT fulfillment software. For instance, Pet infrastructures in 2015. However, the Pet
Capital Intensity Stores industry’s operations are still products are always readily available
continued relatively labor-intensive, as labor is and will be auto replenished when the
required to operate and manage all the inventory runs low.
equipment and computer systems. To this point, the cost of labor within
Moving forward, IBISWorld anticipates this industry is relatively high compared
that capital intensity in the industry will with competitors such as supermarkets,
increase, albeit at a slow rate. As more mass merchandisers and online pet
customers are working individuals who supply retailers. This is because the other
prefer to save time traveling to the stores do not retail pets directly and
shops, self-checkout counters or faster provide pet services, inherently requiring
POS systems are essential in the future fewer and less-skilled staff. In addition,
to help improve customer experience. these stores do not incur costs associated
Moreover, industry operators want to with employee training, since workers at
avoid situations where customers make these retailers do not require industry-
a trip to their store then realize the specific knowledge. For online retailers,
product that they want is out of stock. labor costs are exceptionally low as they
Thus, it is crucial to invest in product are not required to outlay expenditure on
fulfillment software to ensure that shelving, displays or cash registers.
Technology and Over the five years to 2019, there have been productivity because it increases the
Systems few technological advances relevant to the speed at which information is passed,
Pet Stores industry. Technological enables greater control over the
Level advances in this industry are generally distribution of goods and reduces errors
limited to those occurring in similar retail along the supply chain. New
The level
of industries, such as computer scanning cash improvements will boost revenue for
technology change registers and automated inventory larger stores that can afford to invest in
is M
edium equipment. The introduction of this the technologies. For example, larger
technology has enabled retailers to better retailers benefit from radio-frequency
manage the efficiency of operations and identification, which provides real-time
inventory. Technology at checkout leads to information on inventory and helps to
computerized point-of-sale equipment, reduce shrinkage problems and improve
which controls and records merchandising, efficiency. Many operators are small in
distribution, sales and stock markdowns. size and do not have the necessary
Furthermore, barcode scanning offers financial resources to purchase expensive
the advantages of higher labor electronic equipment.
Revenue Volatility Pet stores sell both discretionary (e.g. discretionary services such as day camp
pets, toys and accessories) and and training courses to boost revenue.
nondiscretionary products (e.g. pet Thus, discretionary pet products and
Level
food). While purchasing a pet is services tend to fluctuate with income
The level of generally discretionary, a large levels and economic conditions. For
volatility is L ow proportion of expenditure on a pet is instance, pet owners generally reduce
typically nondiscretionary; these purchases of toys, accessories and
include staples such as food and grooming services in an economic
medicine. Pet stores also offer downturn. Fortunately, discretionary
Revenue Volatility offerings only account for a smaller for the majority. Therefore, this high
continued share of industry revenue while level of nondiscretionary demand keeps
nondiscretionary components make up the volatility of this industry low.
Regulation and Policy There are industry-specific and general that minimum standards of care and
regulations that apply to the Pet Stores treatment be provided for certain animals
industry. The transportation, handling that are bred for commercial sale, used in
Level & Trend and sale of small pets are governed by research, transported commercially or
he level of
T various federal, state and local exhibited to the public. Retail pet shops
Regulation is authorities. In addition, industry are not covered under the Act unless the
Mediumand the participants are subject to environmental shop sells exotic or zoo animals or sells
regulations imposed by federal, state and animals to regulated businesses. Pets
trend is S
teady
local authorities in relation to the owned by private citizens are not
generation, handling, storage, regulated. Regulated businesses are
transportation and disposal of waste and required to keep accurate records of
biohazardous materials, in addition to acquisition and disposition and a
the sale and distribution of products. description of animals that come into
The Pet Animals Act 1951 deems it an their possession.
offense to open a pet shop unless it is Many state and local governments
granted a license in accordance with the have passed additional animal welfare
Act. When deciding to grant a license, legislation. More than 20 states have
district councils need to consider whether regulations governing the sale of dogs
there is suitable accommodation and and 15 states govern the sale of cats.
enough food and water, whether the These regulations stipulate the
animals are sold at a too young age and information that sellers must provide at
whether reasonable precautions have the time of purchase and various options
been taken to curb the spread of disease. that buyers have if the purchased pet is
The Animal Welfare Act (AWA) protects sick. These states have regulations that
certain animals from inhumane enable consumers to obtain
treatment and neglect. The AWA requires reimbursement when a sick animal is
Regulation and Policy purchased from a pet store. This is

continued known as a lemon law that is designed to
protect consumers that buy animals from
pet shops.
Industry Assistance The Pet Stores industry does not receive which promotes pet ownership and
any specific government support, in the disseminates industry-related
form of subsidies, tax breaks or information to members. Another
Level & Trend otherwise. Instead of government notable trade association is the
he level of
T assistance, the industry relies on trade American Pet Products Association
Industry Assistance associations to represent the industry (APPA). Many veterinary associations
is N
oneand the and the latest products and trends for also support the industry by reporting
pet owners. The most notable among on best practices and products
trend is S
teady
them is the American Pet Association, recommended for various pets.
Key Statistics
Industry Data Industry Number of pets
Revenue Value Added Establish- Wages Domestic - cats and dogs
($m) ($m) ments Enterprises Employment Exports Imports ($m) Demand (Mil)
2010 15,505.1 2,900.6 16,502 13,305 105,327 -- -- 2,156.5 N/A 164.6
2011 15,954.0 3,022.9 16,345 13,064 106,581 -- -- 2,209.2 N/A 164.4
2012 17,113.3 3,574.6 16,810 13,212 109,478 -- -- 2,359.5 N/A 171.7
2013 17,036.7 3,208.6 16,715 12,938 111,847 -- -- 2,356.8 N/A 178.9
2014 17,047.7 3,167.5 17,067 13,025 116,598 -- -- 2,366.3 N/A 171.3
2015 18,131.4 3,504.2 17,240 12,948 118,462 -- -- 2,525.1 N/A 163.6
2016 18,766.5 3,391.8 17,395 13,037 124,859 -- -- 2,622.3 N/A 173.8
2017 19,568.9 3,807.7 17,896 13,367 129,578 -- -- 2,751.0 N/A 183.9
2018 20,249.7 3,901.5 18,246 13,603 132,852 -- -- 2,840.8 N/A 184.5
2019 21,063.3 4,046.0 18,714 13,925 137,588 -- -- 2,944.6 N/A 187.6
2020 21,861.3 4,193.6 19,171 14,242 142,304 -- -- 3,047.7 N/A 190.3
2021 22,613.8 4,332.2 19,663 14,591 146,971 -- -- 3,148.6 N/A 192.9
2022 23,372.2 4,484.6 20,168 14,952 151,673 -- -- 3,250.3 N/A 195.7
2023 24,121.7 4,632.4 20,701 15,339 156,485 -- -- 3,353.7 N/A 198.5
2024 24,693.9 4,744.2 21,210 15,714 160,508 -- -- 3,438.6 N/A 192.2
Sector Rank 38/63 38/63 42/63 42/63 38/63 N/A N/A 35/63 N/A N/A
Economy Rank 371/694 451/694 234/694 248/694 239/694 N/A N/A 403/694 N/A N/A
Annual Change Industry Establish- Domestic Number of pets

Revenue Value Added ments Enterprises Employment Exports Imports Wages Demand - cats and dogs
(%) (%) (%) (%) (%) (%) (%) (%) (%) (%)
2011 2.9 4.2 -1.0 -1.8 1.2 N/A N/A 2.4 N/A -0.1
2012 7.3 18.3 2.8 1.1 2.7 N/A N/A 6.8 N/A 4.4
2013 -0.4 -10.2 -0.6 -2.1 2.2 N/A N/A -0.1 N/A 4.2
2014 0.1 -1.3 2.1 0.7 4.2 N/A N/A 0.4 N/A -4.2
2015 6.4 10.6 1.0 -0.6 1.6 N/A N/A 6.7 N/A -4.5
2016 3.5 -3.2 0.9 0.7 5.4 N/A N/A 3.8 N/A 6.2
2017 4.3 12.3 2.9 2.5 3.8 N/A N/A 4.9 N/A 5.8
2018 3.5 2.5 2.0 1.8 2.5 N/A N/A 3.3 N/A 0.3
2019 4.0 3.7 2.6 2.4 3.6 N/A N/A 3.7 N/A 1.7
2020 3.8 3.6 2.4 2.3 3.4 N/A N/A 3.5 N/A 1.4
2021 3.4 3.3 2.6 2.5 3.3 N/A N/A 3.3 N/A 1.4
2022 3.4 3.5 2.6 2.5 3.2 N/A N/A 3.2 N/A 1.5
2023 3.2 3.3 2.6 2.6 3.2 N/A N/A 3.2 N/A 1.4
2024 2.4 2.4 2.5 2.4 2.6 N/A N/A 2.5 N/A -3.2
Sector Rank 3/63 8/63 6/63 7/63 2/63 N/A N/A 2/63 N/A N/A
Economy Rank 64/694 108/694 120/694 137/694 71/694 N/A N/A 64/694 N/A N/A
Key Ratios Imports/ Exports/ Revenue per Share of the

IVA/Revenue Demand Revenue Employee Wages/Revenue Employees Average Wage Economy
(%) (%) (%) ($’000) (%) per Est. ($) (%)
2010 18.71 N/A N/A 147.21 13.91 6.38 20,474.33 0.02
2011 18.95 N/A N/A 149.69 13.85 6.52 20,727.90 0.02
2012 20.89 N/A N/A 156.32 13.79 6.51 21,552.28 0.02
2013 18.83 N/A N/A 152.32 13.83 6.69 21,071.64 0.02
2014 18.58 N/A N/A 146.21 13.88 6.83 20,294.52 0.02
2015 19.33 N/A N/A 153.06 13.93 6.87 21,315.70 0.02
2016 18.07 N/A N/A 150.30 13.97 7.18 21,002.09 0.02
2017 19.46 N/A N/A 151.02 14.06 7.24 21,230.46 0.02
2018 19.27 N/A N/A 152.42 14.03 7.28 21,383.19 0.02
2019 19.21 N/A N/A 153.09 13.98 7.35 21,401.58 0.02
2020 19.18 N/A N/A 153.62 13.94 7.42 21,416.83 0.02
2021 19.16 N/A N/A 153.87 13.92 7.47 21,423.27 0.02
2022 19.19 N/A N/A 154.10 13.91 7.52 21,429.65 0.02
2023 19.20 N/A N/A 154.15 13.90 7.56 21,431.45 0.02
2024 19.21 N/A N/A 153.85 13.92 7.57 21,423.23 0.02
Sector Rank 21/63 N/A N/A 40/63 22/63 14/63 38/63 38/63
Economy Rank 513/694 N/A N/A 496/694 420/694 403/694 613/694 451/694
Figures are in inflation-adjusted 2019 dollars. Rank refers to 2019 data. SOURCE: WWW.IBISWORLD.COM
Industry Financial Ratios

Apr 2017 - Mar 2018 by company revenue
Apr 2014 - Apr 2015 - Apr 2016 - Apr 2017 - Small Medium Large
Mar 2015 Mar 2016 Mar 2017 Mar 2018 (<$10m) ($10-50m) (>$50m)
Liquidity Ratios
Current Ratio 2.0 1.6 1.5 2.4 2.5 n/a n/a
Quick Ratio 0.5 0.4 0.4 0.6 0.8 n/a n/a
Sales / Receivables (Trade Receivables
Turnover) 141.0 269.1 172.4 141.9 n/c n/a n/a
Days’ Receivables 2.6 1.4 2.1 2.6 0.4 n/a n/a
Cost of Sales / Inventory (Inventory Turnover) 6.3 5.5 6.0 6.2 6.2 n/a n/a
Days’ Inventory 57.9 66.4 60.8 58.9 58.9 n/a n/a
Cost of Sales / Payables (Payables Turnover) 16.0 17.0 17.1 23.5 35.8 n/a n/a
Days’ Payables 22.8 21.5 21.3 15.5 10.2 n/a n/a
Sales / Working Capital 15.5 17.3 17.5 12.4 11.5 n/a n/a
Coverage Ratios
Earnings Before Interest & Taxes (EBIT) /
Interest 5.9 9.7 7.0 4.5 4.2 n/a n/a
Net Profit + Dep., Depletion, Amort. / Current
Maturities LT Debt n/a n/a n/a n/a n/a n/a n/a
Leverage Ratios
Fixed Assets / Net Worth 0.5 0.6 0.6 0.3 0.3 n/a n/a
Debt / Net Worth 1.7 1.7 1.9 1.4 1.9 n/a n/a
Tangible Net Worth 25.9 24.5 32.4 23.7 11.9 n/a n/a
Operating Ratios
Profit before Taxes / Net Worth, % 34.0 33.8 28.3 26.0 28.6 n/a n/a
Profit before Taxes / Total Assets, % 8.5 11.4 8.6 7.7 7.0 n/a n/a
Sales / Net Fixed Assets 43.5 24.7 27.8 28.4 29.8 n/a n/a
Sales / Total Assets (Asset Turnover) 4.3 4.1 3.7 3.7 4.1 n/a n/a
Cash Flow & Debt Service Ratios (% of sales)

Cash from Trading 39.4 37.2 36.8 40.9 45.1 n/a n/a
Cash after Operations 4.9 3.6 4.1 4.1 3.4 n/a n/a
Net Cash after Operations 5.1 4.1 4.2 4.2 4.1 n/a n/a
Cash after Debt Amortization 1.8 1.8 1.0 0.5 -0.9 n/a n/a
Debt Service P&I Coverage 5.8 8.7 6.7 4.0 1.6 n/a n/a
Interest Coverage (Operating Cash) 15.5 15.1 7.1 9.7 4.0 n/a n/a
Assets, %
Cash & Equivalents 12.0 14.2 11.9 17.8 18.3 n/a n/a
Trade Receivables (net) 9.2 7.4 6.5 7.3 5.4 n/a n/a
Inventory 47.9 43.1 47.1 39.8 40.0 n/a n/a
All Other Current Assets 4.6 2.9 2.2 2.6 2.5 n/a n/a
Total Current Assets 73.7 67.6 67.7 67.5 66.3 n/a n/a
Fixed Assets (net) 16.3 20.8 22.8 21.1 20.7 n/a n/a
Intangibles (net) 4.1 5.0 4.9 5.1 5.8 n/a n/a
All Other Non-Current Assets 5.9 6.6 4.5 6.3 7.3 n/a n/a
Total Assets 100.0 100.0 100.0 100.0 100.0 n/a n/a
Total Assets ($m) 936.1 729.3 574.6 331.5 48.4 87.4 195.7
Liabilities, %
Notes Payable-Short Term 12.5 14.9 9.5 9.2 8.3 n/a n/a
Current Maturities L/T/D 1.3 4.4 3.6 4.2 5.5 n/a n/a
Trade Payables 24.5 19.6 17.3 12.8 11.5 n/a n/a
Income Taxes Payable 0.2 0.1 0.4 0.2 0.2 n/a n/a
All Other Current Liabilities 9.6 8.4 9.7 8.0 7.7 n/a n/a
Total Current Liabilities 48.2 47.4 40.5 34.4 33.3 n/a n/a
Long Term Debt 14.3 16.2 12.2 23.2 31.1 n/a n/a
Deferred Taxes 0.2 0.1 0.2 0.1 n/a n/a n/a
All Other Non-Current Liabilities 7.4 6.8 9.8 13.4 17.8 n/a n/a
Net Worth 30.0 29.5 37.3 28.8 17.7 n/a n/a
Total Liabilities & Net Worth ($m) 936.1 729.3 574.6 331.5 48.4 87.4 195.7
Maximum Number of Statements Used 85 80 55 50 35 9 6
Source: RMA Annual Statement Studies, rmahq.org. RMA data for all industries is derived directly from more
than 260,000 statements of member financial institutions’ borrowers and prospects.
Note: For a full description of the ratios refer to the Key Statistics chapter online.
Jargon & Glossary
Industry Jargon INITIAL PUBLIC OFFERINGA type of public offering PET PARENTSPet owners who are enthusiastic about
in which shares of a company are usually sold to their pets and treat them as members of their family.
institutional investors who, in turn, sell to the general
public on a securities exchange for the first time.
PET BOARDING AND DAY-CARELong- and short-term
options for owners who need assistance looking after
their pets. Services include feeding, walking, grooming
and lodging.
IBISWorld Glossary BARRIERS TO ENTRYHigh barriers to entry mean that INDUSTRY CONCENTRATIONAn indicator of the
new companies struggle to enter an industry, while low dominance of the top four players in an industry.
barriers mean it is easy for new companies to enter an Concentration is considered high if the top players
industry. account for more than 70% of industry revenue.
CAPITAL INTENSITYCompares the amount of money Medium is 40% to 70% of industry revenue. Low is less
spent on capital (plant, machinery and equipment) with than 40%.
that spent on labor. IBISWorld uses the ratio of INDUSTRY REVENUEThe total sales of industry goods
depreciation to wages as a proxy for capital intensity. and services (exclusive of excise and sales tax); subsidies
High capital intensity is more than $0.333 of capital to on production; all other operating income from outside
$1 of labor; medium is $0.125 to $0.333 of capital to $1 the firm (such as commission income, repair and service
of labor; low is less than $0.125 of capital for every $1 of income, and rent, leasing and hiring income); and
labor. capital work done by rental or lease. Receipts from
CONSTANT PRICESThe dollar figures in the Key interest royalties, dividends and the sale of fixed
Statistics table, including forecasts, are adjusted for tangible assets are excluded.
inflation using the current year (i.e. year published) as INDUSTRY VALUE ADDED (IVA)The market value of
the base year. This removes the impact of changes in goods and services produced by the industry minus the
the purchasing power of the dollar, leaving only the cost of goods and services used in production. IVA is
“real” growth or decline in industry metrics. The inflation also described as the industry’s contribution to GDP, or
adjustments in IBISWorld’s reports are made using the profit plus wages and depreciation.
US Bureau of Economic Analysis’ implicit GDP price INTERNATIONAL TRADEThe level of international
deflator. trade is determined by ratios of exports to revenue and
DOMESTIC DEMANDSpending on industry goods and imports to domestic demand. For exports/revenue: low is
services within the United States, regardless of their less than 5%, medium is 5% to 20%, and high is more
country of origin. It is derived by adding imports to than 20%. Imports/domestic demand: low is less than
industry revenue, and then subtracting exports. 5%, medium is 5% to 35%, and high is more than
EMPLOYMENTThe number of permanent, part-time, 35%.
temporary and seasonal employees, working proprietors, LIFE CYCLEAll industries go through periods of growth,
partners, managers and executives within the industry. maturity and decline. IBISWorld determines an
ENTERPRISEA division that is separately managed and industry’s life cycle by considering its growth rate
keeps management accounts. Each enterprise consists (measured by IVA) compared with GDP; the growth rate
of one or more establishments that are under common of the number of establishments; the amount of change
ownership or control. the industry’s products are undergoing; the rate of
technological change; and the level of customer
ESTABLISHMENTThe smallest type of accounting unit
acceptance of industry products and services.
within an enterprise, an establishment is a single
physical location where business is conducted or where NONEMPLOYING ESTABLISHMENTBusinesses with
services or industrial operations are performed. Multiple no paid employment or payroll, also known as
establishments under common control make up an nonemployers. These are mostly set up by self-employed
enterprise. individuals.
EXPORTSTotal value of industry goods and services sold PROFITIBISWorld uses earnings before interest and tax
by US companies to customers abroad. (EBIT) as an indicator of a company’s profitability. It is
calculated as revenue minus expenses, excluding
IMPORTSTotal value of industry goods and services
interest and tax.
brought in from foreign countries to be sold in the
United States.
Jargon & Glossary
IBISWorld Glossary VOLATILITYThe level of volatility is determined by WAGESThe gross total wages and salaries of all
averaging the absolute change in revenue in each of the employees in the industry. The cost of benefits is also
continued past five years. Volatility levels: very high is more than included in this figure.
±20%; high volatility is ±10% to ±20%; moderate
volatility is ±3% to ±10%; and low volatility is less than
±3%.
www.ibisworld.com | 1-800-330-3772 | info @ibisworld.com
At IBISWorld we know that industry intelligence

is more than assembling facts
It is combining data with analysis to answer the
questions that successful businesses ask
Identify high growth, emerging & shrinking markets
Arm yourself with the latest industry intelligence
Assess competitive threats from existing & new entrants
Benchmark your performance against the competition
Make speedy market-ready, profit-maximizing decisions
Who is IBISWorld?
We are strategists, analysts, researchers, and marketers. We provide
answers to information-hungry, time-poor businesses. Our goal is to
provide real world answers that matter to your business in our 700 US
industry reports. When tough strategic, budget, sales and marketing
decisions need to be made, our suite of Industry and Risk intelligence
products give you deeply-researched answers quickly.
IBISWorld Membership
IBISWorld offers tailored membership packages to meet your needs.
Disclaimer
This product has been supplied by IBISWorld Inc. (‘IBISWorld’) solely for use of, or reliance upon, the data or information contained herein. Copyright in
by its authorized licenses strictly in accordance with their license agreements this publication is owned by IBISWorld Inc. The publication is sold on the
with IBISWorld. IBISWorld makes no representation to any other person basis that the purchaser agrees not to copy the material contained within it
with regard to the completeness or accuracy of the data or information for other than the purchasers own purposes. In the event that the purchaser
contained herein, and it accepts no responsibility and disclaims all liability uses or quotes from the material in this publication – in papers, reports, or
(save for liability which cannot be lawfully disclaimed) for loss or damage opinions prepared for any other person – it is agreed that it will be sourced
whatsoever suffered or incurred by any other person resulting from the use to: IBISWorld Inc.
Copyright 2019 IBISWorld Inc

Pet Stores in The US Industry Report PDF

Caricato da

Informazioni sul documento

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Pet Stores in The US Industry Report PDF

Caricato da

Copyright:

Formati disponibili

WWW.IBISWORLD.

COM Pet Stores in the USDecember 2019 1

Puppy love: Competition from online retailers and

IBISWorld Industry Report 45391

2 About this Industry 16 International Trade 29 Revenue Volatility

www.ibisworld.com | 1-800-330-3772 | info @ibisworld.com

About this Industry

Main Activities The primary activities of this industry are

The major products and services in this industry are

Similar Industries 54194 Veterinary Services in the US

81291 Pet Grooming & Boarding in the US

45411a E-Commerce & Online Auctions in the US

45411b Mail Order in the US

Additional Resources For additional information on this industry

Key Statistics Revenue Annual Growth 14–19 Annual Growth 19–24

$905.7m $2.9bn 13,925

Key External Drivers 1.3%

Industry Structure Life Cycle Stage Growth Regulation Level Medium

Number of pets (cats and dogs) Per capita disposable income

Current The Pet Stores industry is anticipated to

increasingly offered a wide array of

Industry expansion Traditional pet stores are generally small-

Mounting In recent years, supermarkets, discount associated with shopping at physical

Industry The Pet Stores industry will continue to

Pet ownership to grow The number of pets is the primary driver of

Changing Despite favorable economic

Products & Markets

Supply Chain KEY BUYING INDUSTRIES

KEY SELLING INDUSTRIES

Products and Services Products and services segmentation (2019)

Total $21.1bn SOURCE: WWW.IBISWORLD.COM

Pet food obese animals, specialized formulas for

Products & Markets

Products & Markets

Demographics and lifestyle Rising online competition

Products & Markets

Major Markets Major market segmentation (2019)

Consumers between 45 and

Total $21.1bn SOURCE: WWW.IBISWORLD.COM

reported 38.0% of households with Consumers under 25 years old

Products & Markets

Products & Markets

Business Locations 2019

West Establishments (%)

Products & Markets

Business Locations Establishments in the Pet Stores industry

the higher the chance that they can make a

West Great Lakes and the Southwest

Cost Structure Wages consist of a range of pet food and pet

Sector vs. Industry Costs

Cost Structure particularly on premium or high-margin magazines, radio and TV advertising.

Basis of Competition Internal competition Mass merchandisers and discount retailers

Barriers to Entry range of issues and receive licenses based

merchandisers, online operators and

PetSmart Inc. 33.7% SOURCE: WWW.IBISWORLD.COM

PetSmart Inc. (US industry-specific segment) - financial performance*

*Estimates; **Fiscal year-end January 31

Petco Animal Supplies Inc. (US industry-specific segment) - financial

*Estimates; **Year-end January 31

Capital Intensity The Pet Stores industry, similar to most

computers, cashier equipment and other 0.3

Therefore, this industry is labor-intensive 0.1

increased over the past five years,

COM Pet Stores in the USDecember 2019 1