Following today’s release of Pets at Home’s figures for the year ending 30th March 2023; Jamel Boughedda, retail analyst at GlobalData, a leading data and analytics company, offers his view: “Pets at Home achieved good growth in its FY2022/23 as it came up against strong comparatives following the pandemic-induced growth in pet ownership over recent years. Total revenue grew 6.6% to £1.4bn, aided by growth across all channels and a strong performance in its vet and retail segments. As a result of its performance, Pets at Home announced its medium-term growth plan to build the “world’s best pet care platform” by integrating products, services and advice to connect its online and instore offerings on a unified pet care app, aiming to fulfil all consumers’ pet care needs, while boosting shopper loyalty and provide greater convenience. The group reported a fall in its operating profit to £136.8m due to higher energy costs and investment in building its platform.
“Vet like-for-like (l-f-l) sales increased 13.4%, with the group achieving in excess of £10m in consumer revenue per week across its general practices and 8,500 new vet clients a week. Following the boom in pet ownership over the pandemic, Pets at Home is reaping the rewards from continued demand for pet care and veterinary services. Although its vet division still makes up a small proportion of its total sales at 8.7%, its investments in this division will help ensure its future growth as consumers will use vet services for the whole of their pets’ lives. The retailer also saw an uptick in its retail division, with l-f-l growth of 7.5% as it has improved its price competitiveness during the cost-of-living crisis and its proposition, such as by opening a new distribution centre to underpin its future growth. The positive results showcase the fact that pet care and veterinary services are essential purchases for consumers, despite inflation forcing them to cut back spending.
“Pets at Home grew its active VIP base to 7.7m shoppers, and its loyalty schemes are proving vital during the current economic climate to ensure shoppers do not switch to other retailers, helping it extend its lead over competitors. The retailer is well placed going forward, with current trading remaining strong and robust customer loyalty continuing to support volume growth. In its FY2023/24, Pets at Home anticipates sales to grow in line with its medium-term ambition of 7%, with profit before tax expected to remain flat at £136m as inflation remains high. The retailer continues to show resilience and strong growth amidst a weakening retail market, and with consumers prioritising their pets, its loyalty schemes and price competitiveness will continue to resonate with shoppers.”
