Rising pet ownership and higher disposable income levels are driving industry growth.
New York, NY (PRWEB) July 05, 2014
The Pet Stores industry has exhibited steady, consistent growth over the past five years, fuelled by high pet ownership rates, with an increasing number of "pet parents" (i.e. those who treat their four-legged companions as family members) bolstering demand. Competition from supermarkets, mass merchandisers and online retailers has increased; however, higher household income levels and rising consumer confidence have encouraged consumers to loosen up their purse strings and spend on pet products, bolstering industry demand. Over the five years to 2014, IBISWorld estimates that industry revenue will grow at an average annual rate.
According to IBISWorld Industry Analyst Andy Brennan, "Pet stores, which are traditionally small and independently owned operations, have faced mounting competition from supermarkets, mass merchandisers and online retailers." In addition to luring consumers with competitive prices, these retailers offer the convenience of one-stop shopping. As a result, time-poor consumers have turned to these alternative retailers to streamline and simplify errands. In response to heightened competition, pet stores have placed greater emphasis on providing specialty services such as one-to-one consultation with pet nutritionists and veterinarians. In addition, pet stores are actively engaged in community initiatives and partnerships with animal shelters, charities and adoption services. Such involvement helps raise consumer awareness and drives foot traffic to pet stores.
The overall outlook for the Pet Stores industry is positive. Rising pet ownership, especially of smaller pets, will catalyze industry growth in the next five years. In addition, the rebounding economy and rising disposable income will likely boost total retail spending, enabling pet owners to pamper their pets and splurge on pet products. “Healthcare products and dietary supplements will further underpin industry growth as consumers search for ways to avoid expensive medical treatments,” says Brennan. With rising sales volumes, especially for premium products that typically have higher markups, industry profitability is expected to improve. Consequently, IBISWorld forecasts industry revenue to rise at an annualized rate in the five years to 2019.
For more information, visit IBISWorld’s Pet Stores in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry sells a variety of pets, including dogs, cats, fish and birds. Stores also sell pet food and pet supplies, such as collars, leashes, health and beauty aids, shampoos, medication, toys, pet containers, dog kennels and cat furniture. Some stores also offer pet services, such as grooming and training.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
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Barriers to Entry
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