Pet Industry 2013 Strategic Outlook

See U.S. market sizes of pet food, veterinary services, supplies and pet services, sliced by demographic group. Includes pet owner spending demographics, core trends and analysis on fragmentation, the retail landscape, changes in the food and vet industries, and opportunities moving forward.

This report provides key spending trends by age, income and household composition that are driving the pet industry. It contains actionable intelligence to help your business, marketing or product development initiatives. Learn more or buy securely here



For instance, the above table shows both overall ($2.4 billion) and segment market sizes for pet owners who have a child younger than six years old. These new families used to be part of a core demographic group with children in the 'pet acquisition years' that can engender loyalty to a brand. These customers continue to increase spending, particularly on food and at the vet.

 

PetSmart Q3 2012

PetSmart, Inc. (NASDAQ:PETM) last week reported strong 3rd quarter results for 2012, booking $82 million in net income on $1.6 billion in sales, up 9%. Comparable store sales grew 6.5%. Services sales grew 8% to $175 million.

The company credits its hard goods resets over the past two years for continued differentiation in a competitive industry, supplying a mix of exclusive brands - including GNC, KONG and Martha Stewart - and private labels like Top Paw that align with consumer demand. Hard goods made up for 33.1% of sales.

In consumables, which accounted for 53.9% of sales, super-premium continues to be the largest and fastest growing category.

Services accounted for 10.7% of sales. Pet services like grooming, boarding and veterinary care are an "integral part" of PetSmart's strategy to further differentiate it from the competition, drive traffic and repeat visits to the stores, and provide cross-selling opportunities.

PetSmart adapts well to fast-changing consumer trends and loyalties, which can't be easy with 1,269 stores. Illustrating the humanization trend, the company has increased television advertising spending for the holiday season, jumping on the Black Friday shopping spree with specific ads, and soon to launch a 12 Days of Christmas ad campaign.

Feeling good in the U.S., the company is "dipping a toe in the water" in Asia with a "low-risk learning exercise" in South Korea with Emart.

Source: PetSmart Investor Relations

FTC to Examine Pet Medications Industry

Ten years ago, pet medications were dispensed mostly by veterinarians. Today, brick-and-mortar, online retail and nationwide pharmacy chains like Kroger also sell pet meds, especially OTC medications.

As we've pointed out in earlier posts and in our pet market research over the years, the evolution of America's pet culture - and corresponding increase in spending - has fundamentally changed the distribution practices and competitive landscape of the pet medications industry. The internet economy and recent flood of generic flea & tick meds onto the market are among many changes responsible for this.

Now, the Federal Trade Commission plans to take a look in a FTC Workshop on Pet Medications Issues later this year.

Issues of competition and consumer protection will be discussed, including prescription portability, consumer choice, veterinarians rights, product supply and quality. The FTC also has questions about business rationales, innovation, and future barriers to entry into the pet medications market.

That's a lot of questions for a lot of stakeholders. This could be a very important meeting that defines the next ten years of the pet medications industry. Upon completion, the Commission may prepare a report on the issues.

Stakeholders include businesses and consumers, and are invited to comment on any of these issues to the FTC before September 14, 2012.