Pets at Home on track for another bumper year, says GlobalData

Following today’s release of Pets at Home’s figures for Q3 FY2021/22; Georgina Sreeves, retail analyst at GlobalData, a leading data and analytics company, offers her view: “Pets at Home doubled down on gains made during the height of the pandemic and has continued to achieve growth as it capitalises on recurring pet care revenue. Performance on a two-year basis shows just how far the pet specialist has come; store and omnichannel like-for-like (l-f-l) sales grew 21.1% and 99.3% respectively on FY2019/20, while vet group l-f-l sales increased 23.3%. The pet specialist upgraded its full-year pre-tax profit forecast to at least £140m as a result of its robust performance in its financial year-to-date.

“The pet specialist is investing in fast fulfilment as it appeals to the ever-increasing demand for convenience spearheaded by COVID-19; Pets at Home expanded its deliver-from-store and one-hour click & collect services during the quarter which resulted in a third of online orders being fulfilled from stores. Omnichannel now accounts for 15.9% of retail revenue compared to 14.9% the previous year and 10.3% on a two-year basis, signifying a longer-term shift to online.

“Growing its VIP membership base remains a key focus for Pets at Home, and its efforts have proved fruitful so far. The number of active VIPs increased 13.0% year-on-year (y-o-y) to 7m which contributed to VIP customer revenue growth of 22.5% to £1,086.1m year-to-date, while also providing valuable customer insights. VIP members are also receptive to Pets at Home’s multichannel offering as 27% of all VIP members purchased from more than one channel in its third quarter; an increase of 18% y-o-y.

“Inflation does not appear to be the key driver of Pets at Home’s revenue growth, it instead cited strong volume growth across its key categories and channels. Additionally, the pet specialist is successfully navigating inflationary pressures on the supply chain by reducing rent, making its operations more efficient and working with its suppliers to help maintain competitive prices.”