Following today’s release of Pets at Home’s figures for the 12 weeks to 5 January 2023; Joe Dawson, retail analyst at GlobalData, a leading data and analytics company, offers his view: “Pets at Home has exceeded expectations as it reported impressive revenue growth despite coming up against a strong comparative period. These results were aided by its popular subscriptions and loyalty schemes, ensuring like-for-like retail sales grew 7.6% for the 12 weeks ending 5 January 2023. The pet care specialist raised its profit outlook, having been more reserved in its H1 results due to high freight container rates and energy costs. Pets at Home now expects its profit before tax to be towards the upper end of the £126m-£136m range for FY2022/23, resulting in its share price being up over 10% in early morning trading. The pet care specialist has enjoyed consistent growth since the COVID-19 pandemic which saw an uptick in pet ownership, with consumer revenue up over 30% compared to pre-pandemic figures.
“Pets at Home’s subscription plans now bring in over £135m in annualised recurring consumer revenue. Its Vet Group like-for-like sales increased by 18.0% during the period, achieving £10m weekly sales for the first time, as new client registrations averaged 8,000 per week to see its active client base grow to 1.7m. Its Puppy and Kitten Club, which offers discounts on goods and services as well as expert advice, welcomed 23,000 sign-ups per week in Q3, demonstrating a loyal customer base that is likely to continue to grow as it remains the first port of call for pet owners.
“While these numbers are impressive, these results indicate a slight deceleration compared to H1 FY2022/23, suggesting consumer demand for pet care may have slowed before the festive period, as increased energy costs took their toll on consumer spending and many cut back or traded down to value brands. The convenience of subscriptions coupled with the expansion of instore veterinary and grooming services will encourage shoppers to see Pets at Home as a one-stop-shop for all of their pet care needs, and the value offered with the loyalty scheme will help to dissuade shoppers from trading down to discount retailers and supermarkets.”
