Pet Supermarket - Competitors

Pet Supermarket Competition

Now Viewing Pet Supermarket's competition in: Pet Stores

Recent Developments

Pet Food Prices Rising - The same factors driving up grocery bills are sending pet food prices soaring. The cost of ingredients, including grains and meats, and fuel for deliveries helped drive pet food prices up 9.8 percent in June 2008 over the same period a year ago. This jump is the largest pet food price increase in years. Retailers such as PetSmart report seeing prices from pet food makers rise anywhere from 6 to 12 percent in recent months, an increase many pet store owners are passing to customers.

Proposed Federal Legislation could Dramatically Affect Pet Industry - The Nonnative Wildlife Invasion Prevention Act, introduced in the House in June 2008, is rocking the pet industry. The legislation would prevent entry of any nonnative species to the US that could establish itself or could carry viruses, bacteria, or parasites. A Pet Industry Joint Advisory Council representative, testifying before a House subcommittee, says that the legislation would negatively impact the pet, food aquaculture, and sports fishing industries, all of which depend on imports of nonnative species.

PetSmart Sued Over Parrot Fever Death - A Texas family filed a wrongful death suit against PetSmart in June 2008, claiming that their father contracted psittacosis, more commonly known as parrot fever, from a cockatiel bought in a Corpus Christie PetSmart store. According to the lawsuit, the 63-year-old became ill and died less than three weeks after the family brought the bird home in 2006; it also claims an autopsy on the parrot found that it also died of psittacosis.

Competitive Landscape

Pet ownership drives demand, and spending generally resists economic cycles. Profitability for individual companies depends on the ability to generate store traffic and effective merchandising. Large companies offer low prices and wide selections of both products and services. Small companies compete effectively by serving a local market, selling unique products, offering specialized services, or providing pet expertise. The industry is labor-intensive, with annual revenue per employee of about $100,000. Revenue per employee for small, independent pet stores is significantly lower than for major chains. Competitors include grocery stores, warehouse clubs, mass merchandisers, Internet retailers, and some veterinary clinics.

Full Industry Overview For Pet Stores

Pet Stores Industry Forecast

from Hoover's/D&B subsidiary First Research

US personal consumption expenditures on pet food products, an indicator for pet stores, are forecast to grow at an annual compounded rate of 3.6 percent between 2007 and 2012.

Pet Food spending Growth Steadies

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.