Following today’s release of Pets at Home Q3 figures for FY2019/20, Amy Higginbotham, Retail Analyst at GlobalData, a leading data and analytics company, comments: ‘‘Pets at Home continues to go from strength to strength with group revenue reaching £255.9m in Q3, driven by commendable growth in both its retail and vet group divisions.
“Total retail revenue rose 7.2%, with the retailer highlighting that it achieved its biggest trading day both online and offline during the quarter, as its commitment to becoming an omni-channel specialist continues to bear fruit.
“A rise of 7.0% in retail l-f-l growth is particularly impressive, and many retailers can learn from Pets at Home’s creative use of space to boost store appeal at a time when footfall is waning. Pets at Home’s veterinary arm continues to outperform other divisions, with total vet group sales rising 14.4%.
“Changes to the fee structure of its joint venture practices have helped boost profitability – the Group maintained that it expects profit before tax for the full year to be in the region of £87-101m (though the impact of IFRS16 is expected to reduce this by c£6-7m).
“Services currently account for 35.4% of sales, and although this is an improvement on the 33.9% reported this time last year, Pets at Home has a long way to go in achieving its aim for this to reach 50% of revenue. The retailer opened nine new pet-care format stores (which include veterinary practices and services such as pet-care classes and dog-washing stations) during the period, which should help the retailer move towards its goal.
“Pets at Home is wise to focus on integrating its retail and veterinary divisions, as offering specialist services helps differentiate it from non-specialist competitors, such as B&M and Amazon. It also encourages cross-group purchases and has helped Pets at Home drive loyalty –customer sales rose 27.8% on a rolling 12-month basis in its VIP club, while the number of VIPs purchasing both a product and a service grew 24% on year-on-year.”