Following today’s release of Pets at Home’s figures for the 12 weeks ending 2nd January 2025; Emily Scott, retail analyst at GlobalData, a leading data and analytics company, offers her view: “Pets at Home’s Q3 FY2024/25 results reveal a retailer that is losing pace & focus within its core retail business. Retail like-for-like sales fell 2.8% as the retailer continues to put its vet group at the forefront of operations, driving growth through opening vet practices across the UK, which saw a 19.9% increase in like-for-like sales.
“Although the pet retail market isn’t booming, Pets at Home is increasingly coming up against competitors that are offering natural, nutritional, and tailored dog food which consumers are buying into as many are becoming more concerned about their pet’s health. Pets at Home’s slowdown is likely a knock-on effect from this increased competition as well as being hit by very low footfall in October in common with other physical store-based retailers. As consumers increasingly look for convenience within their retail habits, businesses such as Tails who offer bespoke dog food to your door, are becoming popular. Pets at Home must capitalise on opportunities such as specialised animal feed to keep up with the competition and expand their customer base. However, shares were up 4% this morning, as investors were relieved that profit guidance for the full year was being maintained, following its profit warning in November.
“Pets at Home also successfully relaunched its Pets Club membership scheme which saw an increase of 5% in subscriptions. Pets at Home described their digital performance as “improved” and should continue to drive online growth to meet the increasing demand for convenience and personalised shopping experiences. As more consumers turn to e-commerce for pet supplies, expanding their online presence allows Pets at Home to tap into a larger customer base and enhance loyalty through targeted campaigns and ads. By doing this Pets at Home can ultimately strengthen their position in the pet care market by building stronger customer relations and leveraging data insights to offer tailored products and services that meet specific consumer needs.”
