Tuesday, November 15, 2011

Pets and Wal-Mart's Growth Strategy

It seems as though Wal-Mart Stores, Inc (NYSE:WMT) will continue to leverage the pet industry in its own expansion plans. Besides selling Ol' Roy dog food for years, the company has particularly benefitted since a 2005 expansion of pet products online, and a 2006 launch of its own private label organic dog food.

According to Q3 2012 results, the pet supply business was "strong," showing high single-digit comps, in stark contrast to categories like home care and baby care, which had negative comparable store sales. The company states that "assortment initiatives" in the consumables pet category are making a large impact. The dog food category improved 300 basis points in part due to their value brands.

So its no surprise the company is folding pet supplies into its Neighborhood Markets concept now being rolled out across the country. These smaller stores resemble grocery stores, carrying produce, meat and dairy, dry goods, pharmaceuticals, health and beauty products, and pet supplies.

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