WWW.IBISWORLD.

COM Pet Stores in the US December 2012 1

IBISWorld Industry Report 45391
Pet Stores in the US
December 2012 Caitlin Moldvay
ucky dog: PeL owners wIII InvesL In remIum
roducLs us dIsosubIe Income rIses
2 About this Industry
2 Industry Denition
2 Main Activities
2 Similar Industries
2 Additional Resources
3 Industry at a Glance
4 Industry Performance
4 Executive Summary
4 Key External Drivers
5 Current Performance
8 Industry Outlook
11 Industry Life Cycle
13 Products & Markets
13 Supply Chain
13 Products & Services
14 Demand Determinants
15 Major Markets
16 International Trade
17 Business Locations
19 Competitive Landscape
19 Market Share Concentration
19 Key Success Factors
20 Cost Structure Benchmarks
21 Basis of Competition
22 Barriers to Entry
23 Industry Globalization
24 Major Companies
24 PetSmart Inc.
25 PETCO Animal Supplies Inc.
28 Operating Conditions
28 Capital Intensity
29 Technology & Systems
29 Revenue Volatility
30 Regulation & Policy
31 Industry Assistance
32 Key Statistics
32 Industry Data
32 Annual Change
32 Key Ratios
33 Jargon & Glossary
www.ibisworld.com | 1-800-330-3772 | info@ibisworld.com
WWW.IBISWORLD.COM Pet Stores in the US December 2012 2
PeL sLores seII u vurIeLy oI eLs, IncIudIng
dogs, cuLs, hsh und bIrds. SLores uIso seII
eL Ioods und eL suIIes, such us
coIIurs, Ieushes, heuILh und beuuLy uIds,
shumoos, medIcuLIon, Loys, eL
conLuIners, dog kenneIs und cuL IurnILure.
Some sLores uIso oIIer eL servIces, such
us groomIng und LruInIng.
The primary activities of this industry are
Retailing pets
Retailing pet food and supplies
Providing pet grooming and boarding services
54194 Veterinary Services in the US
Establishments in this industry provide veterinary services.
81291 Pet Grooming & Boarding in the US
Operators in this industry provide pet grooming and boarding services.
45411a E-Commerce & Online Auctions in the US
Businesses in this industry retail pet foods and pet supplies via the internet.
45411b Mail Order in the US
Establishments in this industry retail pet foods and pet supplies via mail order or catalogs.
Industry Denition
Main Activities
Similar Industries
Additional Resources
About this Industry
For additional information on this industry
www.americanpetproducts.org
American Pet Products Association
www.petage.com
Pet Age Magazine
www.petbusiness.com
Pet Business
www.hsus.org
The Humane Society
The major products and services in this industry are
Live animals
Pet food
Pet services
Pet supplies
WWW.IBISWORLD.COM Pet Stores in the US December 2012 3
M
i
l
l
i
o
n
s
200
140
150
160
170
180
190
17 03 05 07 09 11 13 15 Year
Number of pets (cats and dogs)
SOURCE: WWW.IBISWORLD.COM
%

c
h
a
n
g
e
10
4
2
0
2
4
6
8
18 04 06 08 10 12 14 16 Year
Revenue Employment
Revenue vs. employment growth
Products and services segmentation (2012)
52.1%
Pet food
31.9%
Pet supplies
10.5%
Pet services
5.5%
Live animals
SOURCE: WWW.IBISWORLD.COM
Key Statistics
Snapshot
Industry at a Glance
Pet Stores in 2012
Industry Structure Life Cycle Stage Growth
Revenue Volatility Low
Capital Intensity Low
Industry Assistance None
Concentration Level Medium
Regulation Level Medium
Technology Change Medium
Barriers to Entry Medium
Industry Globalization Low
Competition Level Medium
Revenue
$14.7bn
Prot
$516.1m
Wages
$2.0bn
Businesses
13,613
Annual Growth 12-17
3.8%
Annual Growth 07-12
2.8%
Key External Drivers
Number of pets
(cats and dogs)
Per capita disposable
income
External competition
Number of households
Market Share
PeLSmurL nc.
q.1%
PETCO AnImuI
SuIIes nc.
zo.;%
p. 24
p. 4
FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 32
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM Pet Stores in the US December 2012 4
Key External Drivers
Number of pets (cats and dogs)
As househoIds udoL more cuLs und dogs,
demund Ior IndusLry goods such us eL
Ioods, medIcIne und uccessorIes
Increuses. The uveruge dog or cuL owner
sends ubouL $zo unnuuIIy jusL on Iood,
uccordIng Lo Lhe AmerIcun PeL ProducL
AssocIuLIon`s (APPA) NuLIonuI PeL
Owner`s Survey. ThIs drIver Is execLed
Lo Increuse durIng zo1, creuLIng u
oLenLIuI oorLunILy Ior Lhe IndusLry.
Per capita disposable income
Consumers IncreusIngIy erceIve eLs
us members oI Lhe IumIIy, so roducLs
Ior eLs cun be consIdered non-
dIscreLIonury. A decreuse In dIsosubIe
Income hus IILLIe eIIecL on demund,
sInce househoIds LyIcuIIy reduce
sendIng on oLher househoId und
IeIsure roducLs beIore cuLLIng down on
eL Iood und Loys. A rIse In er cuILu
dIsosubIe Income, Lhough, Increuses
Lhe roensILy Ior househoIds Lo
urchuse u greuLer quunLILy oI goods
und more remIum ILems LhuL ure
hIgher In rIce. ThIs drIver Is execLed
Lo Increuse sIowIy durIng zo1.
External competition
PeL Iood, Loys und uccessorIes suIIed by
LhIs IndusLry comeLe wILh comurubIe
roducLs oIIered by suermurkeLs und
grocery sLores. SuermurkeLs und grocery
sLores oILen seII Lhe sume roducLs or
very sImIIur roducLs us eL sLores,
rovIdIng consumers wILh udded
convenIence. ThIs drIver Is execLed Lo
Executive
Summary
The PeL SLores IndusLry Is uheud oI Lhe
uck when IL comes Lo suIes. Even durIng
Lhe GreuL RecessIon, whIch sIowed
demund LhroughouL mosL oI Lhe reLuII
secLor, Lhe IndusLry conLInued Lo yIeId
revenue growLh. ThIs Lrend wus muInIy
drIven by un IncreusIng number oI eL
urenLs - eL owners who LreuL LheIr
Iour-Iegged IrIends us IumIIy members.
DurIng Lhe economIc downLurn, when
consumers oI uII Income IeveIs LIghLened
LheIr beILs, eL urenLs cuL buck on LheIr
ersonuI dIscreLIonury sendIng hrsL
beIore sendIng Iess on LheIr eLs.
ConsequenLIy, revenue growLh sIowed
durIng Lhe recessIon buL muInLuIned ILs
overuII osILIve Lrend. Revenue Is
execLed Lo Increuse uL un uveruge unnuuI
ruLe oI z.8% Lo $1q.; bIIIIon In Lhe hve
yeurs Lo zo1z. rom zo11 Lo zo1z,
revenue Is execLed Lo grow q.1%.
The emergIng Lrend oI eL urenLs hus
uIso broughL ubouL hIgh demund Ior
remIum eL roducLs und servIces. SInce
eLs ure oILen consIdered IumIIy
members, eL owners IrequenLIy InduIge
Lhem wILh uII-nuLuruI und orgunIc eL
Ioods und LreuLs, In uddILIon Lo servIces
such us groomIng und duy cure. These
osILIve Lrends, combIned wILh rIsIng
suIes, huve Increused rohL murgIns Ior
IndusLry Iuyers In Lhe hve yeurs Lo zo1z;
BSWorId esLImuLes LhuL murgIns huve
Increused Irom ubouL z.% oI revenue In
zoo; Lo ubouL .% In zo1z.
Over Lhe hve yeurs Lo zo1;, IndusLry
revenue Is rojecLed Lo muInLuIn sLrong
growLh. As Lhe economIc recovery guIns
LrucLIon und consumers ure equIed
wILh heuvIer wuIIeLs, revenue Irom
remIum roducLs und servIces Is
rojecLed Lo Increuse. Moreover, Lhe
number oI eL-ownIng househoIds Is
execLed Lo conLInue IncreusIng, yIeIdIng
greuLer demund Ior IndusLry roducLs.
rom zo1z Lo zo1;, revenue Is IorecusL Lo
rIse uL un uveruge unnuuI ruLe oI .8% Lo
LoLuI $1;.8 bIIIIon.
Industry Performance
Executive Summary | Key External Drivers | Current Performance
Industry Outlook | Life Cycle Stage
nduIgenL eL urenLs wIII drIve u demund Ior
remIum eL Iood und servIces
WWW.IBISWORLD.COM Pet Stores in the US December 2012 5
Industry Performance
Growth during the
recession
ndusLry growLh over Lhe usL hve yeurs
Is IurgeIy uLLrIbuLubIe Lo hIgher eL
ownershI und uccomunyIng demund
Ior eL roducLs. AccordIng Lo Lhe
zo11Jzo1z NuLIonuI PeL Owners Survey
ubIIshed by Lhe AmerIcun PeL ProducLs
AssocIuLIon (APPA), ubouL 6z.o% oI US
househoIds own u eL, whIch equuLes Lo
;z.q mIIIIon homes. PeL ownershI hus
been growIng sIowIy buL sLeudIIy over
Current
Performance
DesILe Lhe economIc downLurn LhuL
undermIned mosL oI Lhe reLuII secLor,
suIes Ior Lhe PeL SLores IndusLry huve
remuIned osILIve In Lhe hve yeurs Lo
zo1z. InuncIuI resIIIence In LhIs IndusLry
hus been owered by owners` LendencIes
Lo LreuL LheIr eLs IIke IumIIy members;
by oIIerIng more InnovuLIve, secIuIIzed
und remIum roducLs und servIces, eL
sLores huve been ubIe Lo cush In on eL
owners` desIres Lo umer LheIr eLs. n
uddILIon, growLh In eL ownershI In Lhe
UnILed SLuLes hus Ied Lo hIgher demund
Ior eL Iood und suIIes overuII.
ConsequenLIy, revenue Ior Lhe PeL SLores
IndusLry Is esLImuLed Lo Increuse uL un
uveruge unnuuI ruLe oI z.8% Lo $1q.;
bIIIIon over Lhe hve yeurs Lo zo1z.
urLhermore, Lhe IndusLry Is execLed Lo
osL q.1% suIes growLh Irom zo11 Lo zo1z
us hIgher dIsosubIe Income encouruges
greuLer sendIng on eLs.
WILh sLrong demund und rIsIng suIes,
eL sLores huve exerIenced IncreusIng
rohL murgIns over Lhe hve-yeur erIod.
SuIes oI remIum eL Iood und
suIIes In urLIcuIur huve drIven u
rohLubIIILy becuuse Lhey LyIcuIIy huve
hIgher murkus. BSWorId esLImuLes
LhuL In zo1z, Lhe IndusLry wIII reuch
murgIns oI .% oI LoLuI revenue, u
Irom z.% In zoo;.
Key External Drivers
continued
remuIn consLunL over zo1, osIng u
oLenLIuI LhreuL Lo Lhe IndusLry.
Number of households
AccordIng Lo Lhe APPA`s mosL recenL
NuLIonuI PeL Owners Survey, 6z.o% oI US
househoIds own u eL. ConsequenLIy, un
Increuse In Lhe number oI househoIds wIII
IIkeIy Ieud Lo growLh In eL ownershI
IeveIs In Lhe UnILed SLuLes, suorLIng
IndusLry demund. ThIs drIver Is execLed
Lo Increuse sIowIy durIng zo1.
%

c
h
a
n
g
e
4
4
2
0
2
18 06 08 10 12 14 16 Year
Per capita disposable income
SOURCE: WWW.IBISWORLD.COM
M
i
l
l
i
o
n
s
200
140
150
160
170
180
190
17 03 05 07 09 11 13 15 Year
Number of pets (cats and dogs)
WWW.IBISWORLD.COM Pet Stores in the US December 2012 6
Industry Performance
Growth during the
recession
continued
Lhe usL Lwo decudes. The APPA reorLs
LhuL In 1qq8, ubouL 1 mIIIIon homes
owned uL IeusL one eL; by zoo, Lhe
number hud rIsen Lo 6q mIIIIon. Such
growLh ruLes huve LrunsIuLed InLo rIsIng
demund Ior eL suIIes In Lhe hve yeurs
Lo zo1z, even durIng recessIonury
economIc condILIons.
Becuuse suIIes such us Iood und
LreuLs ure requIred Ior Lhe weII beIng oI
eLs regurdIess oI househoId Income,
demund Ior Lhe PeL SLores IndusLry hus
roved resIIIenL uguInsL Lhe heudwInds oI
Iow consumer conhdence In Lhe economy
und decreused dIsosubIe Income. To LhIs
end, eL Iood, whIch uccounLs Ior ubouL
z.1% oI IndusLry suIes, hus been Lhe
IeudIng conLrIbuLor Lo osILIve suIes
durIng Lhe recessIon. AccordIng Lo APPA
duLu, suIes Ior eL Iood Increused .;% In
zoo8, q.% In zooq und 6.8% In zo1o.
NoneLheIess, Lhe recessIon`s
sLubbornness hus udverseIy uIIecLed Lhe
IndusLry Lo some exLenL. BeLween zoo8
und zo1o, revenue growLh sIowed us
consumers were Iorced Lo cuL buck on
secIuILy roducLs. AccordIng Lo u zo1o
survey oI eL owners conducLed by PeL
BusIness, u ubIIcuLIon dedIcuLed Lo Lhe
eL suIIes reLuIIIng IndusLry, Lhe
mujorILy oI resondenLs (68.o%)
IndIcuLed LhuL Lhey hud reduced LheIr
sendIng on eL suIIes comured wILh
Lhe revIous yeur.
WILh such decIInes In overuII
sendIng, oeruLors huve been ucLIveIy
uddIng eL servIces Lo cuLure more oI
Lhe consumer doIIur. PeL BusIness
reorLed In unoLher survey LhuL In zo1o,
zz.o% oI reLuIIers udded eL-reIuLed
servIces, such us groomIng und eL
bourdIng, Lo Imrove suIes und murgIns.
BSWorId execLs LhuL In zo1z, Lhe
conLInued emhusIs on eL servIces wIII
be u rImury drIver Ior suIes. As Lhe
unemIoymenL ruLe sIowIy subsIdes und
househoIds guIn more dIsosubIe
Income, consumers wIII IIkeIy Increuse
LheIr sendIng on Lhese dIscreLIonury eL
servIces. PeL Iood suIes ure execLed Lo
Increuse sLeudIIy us weII wILh .1%
growLh durIng zo1z.
Part of the family
n Lhe hve yeurs Lo zo1z, Lhe eL
humunIzuLIon Lrend hus benehLed Lhe
PeL SLores IndusLry. A LIIng oInL wus
reuched In zoo und zoo6 when eoIe
begun rewurdIng LheIr eLs In humun
Lerms, uccordIng Lo Lhe APPA. As such,
Lhe nume eL urenLs wus coIned Lo
descrIbe enLhusIusLIc eL owners
(esecIuIIy oI dogs und cuLs) who LreuL
LheIr eLs us members oI Lhe IumIIy.
WILh LhIs Lrend, Lhe InLeresL In eL
umerIng hus guIned ouIurILy over
Lhe hve-yeur erIod, IeudIng Lo LhrIvIng
demund Ior IndusLry eL servIces. n
IucL, ubouL $q.6 bIIIIon Is execLed Lo be
senL on nonmedIcuI eL servIces In
zo1z. ExumIes oI eL servIces go
beyond Lhe LrudILIonuI groomIng, dog
wuIkIng und LruInIng; Loduy, remIum
servIces IIke eL Lheruy sessIons und
eL-onIy IghLs ure uvuIIubIe Ior Iour-
Iegged IumIIy members. AddILIonuIIy,
doggy hoLeI servIces huve emerged,
equIed wILh heuLed beds und uL-
screen TVs LhuL show hIgh-dehnILIon
DVDs In rIvuLe suILes. The rIse In
demund Ior eL servIces hus osILIveIy
uIIecLed Lhe IndusLry over Lhe yeurs.
SInce Lhere ure Iew vurIubIe cosLs
ussocIuLed wILh Lhese servIces, uny
Increuse In revenue dIrecLIy Imroves
sLores` boLLom IInes.
HIgh-murgIn umerIng
servIces und remIum
roducLs huve Ied Lo
rohL growLh
WWW.IBISWORLD.COM Pet Stores in the US December 2012 7
Industry Performance
Product innovation
n zoo;, meIumIne-conLumInuLed dog
und cuL Iood reorLedIy cuused Lhe deuLh
oI more Lhun ,oo unImuIs, romLIng u
nuLIonwIde recuII und hurLIng Lhe
IndusLry`s reuLuLIon und suIes. ThIs
IncIdenL ucceIeruLed Lhe Lrend Lowurd
remIum eL Ioods wILh nuLuruI und
orgunIc IngredIenLs. NuLuruI und hoIIsLIc
eL Iood suIes reuched $1.o bIIIIon In
zoo8 und huve been growIng un uveruge
oI zo.o% unnuuIIy sInce, uccordIng Lo PeL
BusIness. The rIsIng ouIurILy oI LhIs
Iood segmenL hus broughL In uddILIonuI
suIes whIIe rovIdIng eL sLores wILh un
udvunLuge over exLernuI comeLILors.
WILh Lhe ongoIng humunIzuLIon oI
eLs, u sLrong ush Lowurd InnovuLIng
hIgher-quuIILy und ersonuIIzed eL
roducLs hus occurred In Lhe IndusLry.
ExumIes oI such roducLs IncIude
monogrummed sweuLers, dIgILIzed coIIur
Lugs, hundmude LreuLs und desIgner eL
cIoLhes und uccessorIes. To IurLher
suorL LhIs Lrend, bIg comunIes such us
PuuI MILcheII, Omuhu SLeuks, HurIey
DuvIdson und OId Nuvy huve uIso
InvesLed In eL suIIes, now oIIerIng
roducLs such us dog shumoo, eL uLLIre
und nume-brund Loys. Over Lhe hve yeurs
Lo zo1z, Lhe Lrend Lowurd eL InduIgence
hus been u sIgnIhcunL conLrIbuLor Lo Lhe
growLh oI IndusLry revenue.
Competition from
bigger stores
PeL sLores ure LrudILIonuIIy smuII und
IndeendenLIy owned oeruLIons; ubouL
q.1% oI IndusLry Iuyers ure non-
emIoyers (sLores wILhouL uId
emIoyees). Even umong busInesses LhuL
huve emIoyees, mosL emIoy Iewer Lhun
Iour workers. JusL ;.8% oI LoLuI oeruLors
huve more Lhun zo. Becuuse oI LheIr
redomInunLIy smuII sIze, IndusLry
enLerrIses huve Iuced exLernuI
comeLILIon Irom suermurkeLs und
muss merchundIsers, whIIe IendIng oII
bIg-box secIuILy sLores Irom wILhIn Lhe
IndusLry. ThIs ressure hus conLrIbuLed
Lo overuII consoIIduLIon oI Lhe IndusLry
und hus Iuced IncredIbIe rIce ressures
on smuII secIuILy sLores, some oI whIch
were Iorced Lo exIL or hnd nIche murkeLs
Lo remuIn comeLILIve. Over Lhe hve
yeurs Lo zo1z, Lhe number oI IndusLry
oeruLors conLrucLed uL un uveruge
unnuuI ruLe oI 1.;% Lo un esLImuLed
1,61 comunIes. ThIs decIIne Is urLIy
due Lo Increused exLernuI comeLILIon
couIed wILh conLInuIng merger und
ucquIsILIon ucLIvILy In Lhe IndusLry.
n recenL yeurs, suermurkeLs huve
Iured cusLomers Irom smuIIer secIuILy
sLores by oIIerIng Lhe convenIence oI
one-sLo shoIng. Grocery sLores uIIow
consumers Lo sho Ior u wIde runge oI
househoId roducLs In one IocuLIon,
IncIudIng eL suIIes. TIme-oor
consumers huve Lurned Lo LhIs Lye oI
sLore Lo sLreumIIne und sImIIIy errunds.
MeunwhIIe, muss merchundIsers huve
emerged us mujor reLuIIers oI eL
roducLs, oIIerIng cheuer rIces Ior
IruguI consumers. Due Lo LheIr sIgnIhcunL
sIzes, sLores such us WuImurL und CosLco
exerL hIgher buyIng ower und urchuse
In buIk Irom whoIesuIers. The cosL
suvIngs uchIeved become burguIn rIces
Ior consumers und uIIowed Iurger sLores
Lo IncreusIngIy druw In cusLomers durIng
Lhe recessIon. As such, grocery sLores und
muss merchundIsers huve become
IeudIng reLuIIers oI eL suIIes over Lhe
hve yeurs Lo zo1z. These exLernuI
reLuIIers reresenLed ;.o% oI Lhe
eL-cure murkeL und 61.o% oI Lhe eL
Iood murkeL In zo1o, whereus
SmuIIer oeruLors comeLe
wILh bIg-box reLuIIers
und eL sLores uIIke, Irom
WuImurL Lo PeLSmurL
WWW.IBISWORLD.COM Pet Stores in the US December 2012 8
Industry Performance
Industry
Outlook
The hve yeurs Lo zo1; Iook romIsIng
Ior Lhe PeL SLores IndusLry. RIsIng eL
ownershI Is execLed Lo serve us u
sLrong drIver Ior IndusLry demund. n
uddILIon, sIowIy ImrovIng economIc
condILIons wIII IIkeIy boosL consumer
sendIng, uIIowIng cusLomers Lo sIurge
even more on remIum eL roducLs
und servIces. As such, revenue Is
rojecLed Lo Increuse uL un uveruge
unnuuI ruLe oI .8% Lo $1;.8 bIIIIon over
Lhe hve-yeur erIod, begInnIng wILh
q.6% growLh Irom zo1z Lo zo1.
However, Lhe PeL SLores IndusLry wIII
conLInue Lo Iuce sLrong comeLILIon
Irom grocery sLores und muss
merchundIsers, whIch Lo some exLenL
wIII Iuce u cu on Lhe IndusLry`s growLh.
The number oI eLs owned by
househoIds In Lhe UnILed SLuLes Is Lhe
rImury drIver Ior eL sLore demund.
Becuuse Lhe IndusLry seIIs eLs, IncIudIng
cuLs, dogs, bIrds, humsLers und guIneu
Igs, un Increuse In ownershI generuIIy
LrunsIuLes Lo hIgher revenue. n uddILIon,
u rIse In eL ownershI Ieuds Lo hIgher
demund Ior roducLs such us Iood, LreuLs
und Loys, sInce Lhese goods ure needed
every duy Ior eLs` generuI weII-beIng.
To Lhe IndusLry`s benehL, demund
Ior eLs, esecIuIIy cuLs und dogs, Is
execLed Lo rIse over Lhe hve yeurs Lo
zo1;, rImurIIy drIven by more
common sIngIe-erson househoIds
und Lhe ugIng ouIuLIon,
demogruhIc segmenLs seekIng
comunIonshI. BSWorId rojecLs
LhuL Lhe number oI eLs wIII Increuse uL
un uveruge unnuuI ruLe oI z.z% over
Lhe hve-yeur erIod, conLrIbuLIng Lo
Lhe IndusLry`s growIng revenue.
WILh rIsIng suIes voIumes, Lhe
IndusLry`s rohLubIIILy Is execLed Lo
grow durIng Lhe hve yeurs Lo zo1;.
BSWorId IorecusLs rohL murgIns Lo
Increuse Irom .% oI revenue In zo1z Lo
Competition from
bigger stores
continued
secIuILy sLores uccounLed Ior 1;.o% und
1q.o% oI Lhe murkeLs, resecLIveIy,
uccordIng Lo PeL BusIness.
SmuIIer oeruLors even Iuce
comeLILIon In seIIIng remIum
roducLs, whIch ure oILen u boon Ior
smuII reLuIIers. HIgh-end goods ure
rImurIIy soId Lhrough secIuILy eL
sLores und oLher nIche reLuIIers,
rovIdIng u degree oI guurunLeed suIes
Ior oeruLors und shIeIdIng Lhem Irom
dIrecL comeLILIon.
YeL bIg-box secIuILy sLores such us
PeLSmurL und PETCO oIIer cusLomers
Lhe besL oI boLh worIds by rovIdIng u
broud seIecLIon oI eL roducLs whIIe
oeruLIng on u scuIe Iurge enough Lo uss
cosL suvIngs down Lo consumers In Lhe
Iorm oI Iower rIces. urLhermore, Lhese
Iurge sLores huve uIso rovIded remIum
roducLs, u IucLor LhuL hud roLecLed
smuII secIuILy sLores Irom exLernuI
comeLILIon. As u resuIL, Lhe bIg-box
sLruLegy hus been u sweeIng success In
Lhe PeL SLores IndusLry. PeLSmurL, In
urLIcuIur, hus Increused ILs murkeL shure
Irom q.% In zoo; Lo un execLed
q.1% In zo1z.
%

c
h
a
n
g
e
10
0
2
4
6
8
18 04 06 08 10 12 14 16 Year
Industry revenue
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM Pet Stores in the US December 2012 9
Industry Performance
Industry Outlook
continued
.q% In zo1;. RIsIng rohLubIIILy wIII uIso
conLInue Lo brIng new enLrunLs InLo Lhe
IndusLry. The number oI enLerrIses Is
rojecLed Lo Increuse uL un uveruge
unnuuI ruLe oI z.o% Lo ubouL 1,o1q
comunIes In zo1;.
Changing
competition
Over Lhe hve yeurs Lo zo1;, comeLILIon
Irom exLernuI oeruLors such us
suermurkeLs und muss merchundIsers
Is execLed Lo decIIne sIIghLIy buL
remuIn sLrong. As consumers hnd
LhemseIves urmed wILh uddILIonuI
sendIng cuILuI, Lhey wIII IIkeIy ursue
hIgher-quuIILy eL suIIes IIke
remIum Iood.
DurIng Lhe recessIon und ILs
uILermuLh, exLernuI reLuIIers uLLrucLed
muny budgeL-consLruIned consumers by
oIIerIng u IImILed seIecLIon oI Iow- Lo
medIum-quuIILy goods uL dIscounLed
rIces. However, us dIsosubIe Income
IeveIs Increuse In IIne wILh Lhe economIc
recovery In comIng yeurs, cusLomers ure
execLed Lo Ioosen LheIr budgeLs und
sIurge on hIgher-quuIILy ILems. As u
resuIL, consumers wIII seek oLIons
bused on IucLors oLher Lhun Iow rIces
und Lhereby reLurn Lo uLronIzIng
smuIIer oeruLors LhuL oIIer hIgher
quuIILy und servIces uL hIgher rIces.
DesILe Lhese IuvorubIe condILIons,
however, comeLILIon Irom
suermurkeLs und muss merchundIsers
Is execLed Lo remuIn sLrong Ior busIc
eL suIIes IIke dry eL Iood und cuL
IILLer. Becuuse Lhese roducLs show IILLIe
roducL dIIIerenLIuLIon, consumers wIII
IIkeIy conLInue Lo sho uL Iurge reLuIIers
Lo Luke udvunLuge oI dIscounLed rIces
und Lhe convenIence oI one-sLo shos.
SInce much oI Lhe IndusLry consIsLs oI
u hIgh number oI smuIIer sLores, nIche
roducL murkeLIng wIII become
IncreusIngIy ImorLunL us euch oeruLor
uLLemLs Lo seL ILseII uurL Irom oLher
sLores. or exumIe, ersonuIIzed dIeLs
Ior eLs ure execLed Lo serve us u
oLenLIuI nIche murkeL Ior IndusLry
Premium products will
remain popular
SInce u devusLuLIng eL Iood recuII oI
zoo;, whIch Is susecLed Lo huve cuused
more Lhun ,oo unImuI deuLhs, eL
owners huve become IncreusIngIy
conscIous oI Lhe Iood LhuL Lhey gIve
LheIr Iour-Iegged comunIons. As u
resuIL, muny nuLuruI und orgunIc Ioods
und LreuLs huve guIned ouIurILy,
rovIng Lo be IucruLIve sources oI
revenue over Lhe usL hve yeurs.
BSWorId rojecLs LhuL LhIs Lrend wIII
conLInue over Lhe hve yeurs Lo zo1;. As
househoIds conLInue Lo revIew LheIr
unImuIs` dIeL us u meuns oI ImrovIng
eLs` overuII heuILh, demund Ior nuLuruI
eL Iood wIII IIkeIy remuIn sLrong.
WILh ImrovIng economIc condILIons,
demund Ior secIuIIzed eL servIces Is
execLed Lo conLInue. Over Lhe usL hve
yeurs, eL servIces huve served us
rImury drIvers oI growLh wILhIn Lhe
IndusLry, u Lrend LhuL wIII IIkeIy conLInue
us er cuILu dIsosubIe Income Is
execLed Lo grow un uveruge oI z.o%
unnuuIIy Irom zo1z Lo zo1;. As
unemIoymenL decIInes over Lhe IuLer
urL oI Lhe hve-yeur erIod, more
consumers wIII use LheIr exLru Income Lo
umer LheIr eLs wILh servIces such us
groomIng und bourdIng.
The murkeL Ior remIum
eL Iood und suIIes
wIII grow us economIc
condILIons Imrove
WWW.IBISWORLD.COM Pet Stores in the US December 2012 10
Industry Performance
Changing
competition
continued
oeruLors, IncIudIng secIuI Iood cuLered
Lo obese unImuIs. AccordIng Lo Lhe
AmerIcun PeL ProducLs AssocIuLIon`s
zo11Jzo1z NuLIonuI PeL Owners Survey,
1z.o% oI dogs und 1q.o% oI cuLs ure
consIdered overweIghL. SInce muny eL
owners huve become concerned wILh
LheIr eLs` heuILh, Lhe creuLIon oI oLIons
Lo Imrove eL heuILh resenLs u
oLenLIuI oorLunILy Ior IndusLry
oeruLors. SeveruI eL Iood
munuIucLurers huve IdenLIhed oLenLIuI
growLh In cusLomIzed Iood oLIons,
LukIng InLo consIderuLIon eL breeds, IIIe
sLuges, duIIy ucLIvILIes, umounL oI LIme
Indoors und secIhc medIcuI condILIons.
WWW.IBISWORLD.COM Pet Stores in the US December 2012 11
Industry Performance
The IndusLry`s conLrIbuLIon Lo Lhe economy Is
execLed Lo grow over Lhe 1o yeurs Lo zo1;
New roducLs, such us remIum eL Iood
und servIces, ure beIng InLroduced
PeL ownershI Is conLInuIng Lo rIse sLeudIIy,
exundIng Lhe IndusLry`s LurgeL murkeL
Life Cycle Stage
SOURCE: WWW.IBISWORLD.COM
20
15
10
5
0
5
10
10 10 15 0 20 5 5
%

G
r
o
w
t
h

i
n

s
h
a
r
e

o
f

e
c
o
n
o
m
y
% Growth in number of establishments
Quality Growth
High growth in economic
importance; weaker companies
close down; developed
technology and markets
Maturity
Company
consolidation;
level of economic
importance stable
Quantity Growth
Many new companies;
minor growth in economic
importance; substantial
technology change
Decline
Shrinking economic
importance
Key Features of a Growth Industry
Revenue grows faster than the economy
Many new companies enter the market
Rapid technology & process change
Growing customer acceptance of product
Rapid introduction of products & brands
E-Commerce & Online Auctions
Animal Food
Production
Mail Order
Toy, Doll & Game Manufacturing
Veterinary Services
ood d oo FFoo FFFoo oo oo ood ood
ry Services Ser ry S ry ry ry ry ry ry vi
Pet Stores
WWW.IBISWORLD.COM Pet Stores in the US December 2012 12
Industry Performance
Industry Life Cycle
The PeL SLores IndusLry Is In u growLh
sLuge oI ILs IIIe cycIe, LyIhed by new
roducL InLroducLIons und rIsIng number
oI enLerrIses. n IucL, IndusLry vuIued
udded, whIch meusures Lhe IndusLry`s
conLrIbuLIon Lo Lhe US economy, Is
execLed Lo Increuse .% er yeur In Lhe
1o yeurs Lo zo1;. n comurIson, US GDP
Is rojecLed Lo grow by 1.8% unnuuIIy
over Lhe sume erIod. ThIs IndIcuLes LhuL
Lhe IndusLry Is growIng uL u IusLer ruLe
Lhun Lhe economy, u sIgn LhuL IL Is In Lhe
growLh huse oI ILs IIIe cycIe.
Over Lhe hve yeurs Lo zo1z, Lhe
IndusLry hus osLed sLrong suIes drIven
by eL owners IncreusIngIy humunIzIng
LheIr eLs. To LhIs oInL, AmerIcun PeL
ProducLs AssocIuLIon IndIcuLed LhuL u
LIIng oInL wus reuched In zoo und
zoo6, whereby eoIe begun rewurdIng
eLs In humun Lerms. ConsequenLIy, new
roducLs und servIces huve emerged In
LhIs IndusLry Lo cuLer Lo LhIs Lrend;
IncreusIng number oI eL sLores begun Lo
oIIer remIum eL Iood und LreuLs, In
uddILIon Lo servIces such us groomIng,
LruInIng, wuIkIng und IuII-servIce
bourdIng. ThIs Lrend oI ruId roducL
InLroducLIons IndIcuLes LhuL Lhe PeL
SLores IndusLry Is In Lhe deveIoIng
sLuge. However, new roducL
InLroducLIons ure execLed Lo sIow down
In Lhe hve yeurs Lo zo1; us roducL
suLuruLIon Is reuched.
This industry
is Growing
WWW.IBISWORLD.COM Pet Stores in the US December 2012 13
Products & Services
Pet food
Becuuse Iood Is u necessILy Ior uII eLs,
IL Is noL surrIsIng LhuL eL Ioods muke
u Lhe IurgesL roducL segmenL Ior Lhe
IndusLry. ThIs segmenL covers u wIde
runge oI roducLs such us dry und weL
Iood Ior dogs und cuLs, bIrd Ieed,
crIckeLs und worms Ior reLIIes und
oLher LreuLs und suIemenLs Ior
househoId eLs. n zoo;, however, LhIs
segmenL wus hurL by u nuLIonwIde recuII
oI meIumIne-conLumInuLed dog und cuL
Iood, whIch reorLedIy cuused Lhe deuLh
oI more Lhun ,oo unImuIs. ThIs
IncIdenL, however, hus conLrIbuLed Lo
Lhe Lrend Lowurd remIum eL Ioods
wILh nuLuruI und orgunIc IngredIenLs.
These remIum eL Ioods Lend Lo be
hIgher rIced wILh Iurger murkus; us u
resuIL, LhIs segmenL`s shure oI revenue
hus been rIsIng sInce zoo;. Toduy, u
vurIeLy oI remIum eL Ioods ure
uvuIIubIe Lo consumers. ExumIes
IncIude Lhe ruw dIeL Ior dog und cuL
Ioods, weIghL conLroI Iood Ior obese
unImuIs, secIuIIzed IormuIus Ior
sensILIve sLomuchs und IreshIy buked
cukes und cookIes us LreuLs. n zo1z,
LhIs segmenL Is execLed Lo uccounL Ior
z.1% oI IndusLry revenue.
Products & Markets
Supply Chain | Products & Services | Demand Determinants
Major Markets | International Trade | Business Locations
KEY BUYING INDUSTRIES
99 Consumers in the US
The Pet Stores industry relies on consumers to purchase pet products and to utilize industry
services.
KEY SELLING INDUSTRIES
31111 Animal Food Production in the US
This industry supplies pet stores with a vast array of pet food.
33993 Toy, Doll & Game Manufacturing in the US
This industry supplies pet toys and accessories to industry operators.
54194 Veterinary Services in the US
This industry provides veterinary care services such as vaccinations to industry operators.
Supply Chain
Products and services segmentation (2012)
Total $14.7bn
52.1%
Pet food
31.9%
Pet supplies
10.5%
Pet services
5.5%
Live animals
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM Pet Stores in the US December 2012 14
Products & Markets
Demand
Determinants
Demunds Ior eLs und eL suIIes
ure uIIecLed by Lhe ruLe oI eL
ownershI, Iood und suIy rIces,
househoId Income, demogruhIcs,
und heuILh uwureness.
Pet ownership
PeL ownershI Is u muIn drIver Ior
IndusLry demund by dehnILIon, us
IndusLry oeruLors ure rImury reLuIIers
oI eLs. Thus, us eL ownershI Increuses,
Lhe number oI eLs urchused uIso rIses,
IeudIng Lo hIgher demund und suIes Ior
Lhe IndusLry. n uddILIon, u rIse LhIs
number uIso Ieuds Lo hIgher demund Ior
roducLs such us Iood, LreuLs und Loys,
sInce Lhese goods ure needed every duy
Ior Lhe weII-beIng oI eLs. PeL ownershI
Products & Services
continued
Pet supplies
ProducLs In LhIs segmenL IncIude Iood
bowIs, coIIurs und Ieushes, eL cIoLhIng,
brushes und combs, shoveIs und
scooers, cuL IILLer, cuges bIrds und
reLIIes, LruveI currIers und uny oLher
vurIous uccessorIes Ior eLs. AILhough
LhIs segmenL mukes u Lhe second-IurgesL
roducL murkeL Ior Lhe PeL SLores
IndusLry, LhIs segmenL`s shure oI revenue
hus been decIInIng In Lhe hve yeurs Lo
zo1z rImurIIy due Lo comeLILIon;
becuuse LhIs segmenL encomusses u
wIde vurIeLy oI goods und Lhere ure no
reguIuLIons LhuL IImIL LheIr suIe,
comeLILIon Is quILe hIgh. To LhIs oInL,
eL suIIes ure beIng IncreusIngIy soId uL
u vurIeLy oI reLuII ouLIeLs (e.g. home
ImrovemenL sLores now reLuII doggIe
doors und yeIIow Iuwn soL removers). n
zo1z, eL suIIes ure esLImuLed Lo
uccounL Ior 1.q%oI LoLuI suIes
Services
PeL servIces huve been Lhe IusLesL-
growIng roducL segmenL Ior Lhe
IndusLry. L IncIudes IuII servIce
groomIng, huIrcuLs, buLhs, LoenuII
LrImmIng und LooLh brushIng, buL
excIudes veLerInury servIces. OLher
servIces muy IncIude such ucLIvILIes
us LruInIng, bourdIng und duy cum.
Much oI Lhe rIse oI LhIs segmenL hus
been drIven by u greuLer InLeresL In
eL umerIng. As more eL owners
udoLed Lhem us members oI LheIr
IumIIy, demund Ior InduIgIng unImuIs
uIso Increused. n zo1z, LhIs segmenL
Is execLed Lo uccounL Ior ubouL
1o.% oI revenue.
Live animal purchases
The IIve unImuI segmenL oI Lhe IndusLry
Is execLed Lo reresenL .% oI LoLuI
IndusLry suIes, und LhIs shure hus
remuIned sLubIe over Lhe usL hve yeurs.
ThIs roducL segmenL Is smuII becuuse u
eL Is normuIIy u one-oII urchuse, whIIe
roducLs In oLher segmenLs, such us eL
suIIes und eL Ioods, need Lo be
urchused LhroughouL Lhe IIIe oI Lhe eL
Lhus requIrIng reeLILIve sendIng.
urLhermore, mujor Iuyers In Lhe
IndusLry onIy seII smuII unImuIs und hsh,
und urLner wILh IocuI eL rogrums Ior
cuL und dog udoLIons. On Lhe oLher
hund, smuIIer oeruLIons oILen seII uII
Lyes oI unImuIs: cuLs, dogs, hsh, rubbILs,
bIrds, smuII unImuIs und even reLIIes.
Pet ownership segmentation in the US
(2012)
Animal Share of total pets (%)
Birds 4.3
Cats 22.9
Dogs 20.7
Horse 2.1
Freshwater Fish 40.0
Saltwater Fish 2.3
Reptiles 3.4
Small Animals 4.2
SOURCE: AMERICAN PET PRODUCTS ASSOCIATION
WWW.IBISWORLD.COM Pet Stores in the US December 2012 15
Products & Markets
Major Markets
The IurgesL murkeL Ior Lhe PeL SLores
IndusLry Is consumers beLween Lhe uges
oI q Lo q, who uccounL Ior z8.o% oI
LoLuI revenue. Muny members oI LhIs uge
grou Iook Ior eL comunIons Lo hII Lhe
emLy suce In LheIr househoIds uILer
LheIr chIIdren Ieuve home. As such, u
Iurge roorLIon oI LhIs segmenL cun be
consIdered eL enLhusIusLs, who consIder
eLs IumIIy members, uccordIng Lo
PeLSmurL, u mujor Iuyer In LhIs
IndusLry. urLhermore, consumers In
LhIs roducL murkeL ure LyIcuIIy
emIoyed und huve sLeudy Income
sLreums, uIIowIng Lhem Lo send IreeIy
on eL suIIes.
The second-IurgesL murkeL consIsLs oI
consumers beLween Lhe uges oI Lo qq,
Demand
Determinants
continued
hus been on Lhe rIse over Lhe IusL IourLeen
yeurs. n 1qq8, 6.o% oI US househoIds
owned u eL. ComuruLIveIy, In zo1z,
ubouL 6z.o% oI househoIds ure esLImuLed
Lo own u eL uccordIng Lo Lhe AmerIcun
PeL ProducLs AssocIuLIon.
Income
HousehoIds wILh hIgher Incomes ure
ubIe Lo send more on dIscreLIonury
ILems und servIces soId uL eL sLores,
IeudIng Lo hIgher demund. As such, eL
ownIng househoIds wILh hIgh dIsosubIe
Income huve been Lhe muIn cusLomers
Ior Iuxury und Lrendy eL roducLs,
IncIudIng remIum eL Iood und
desIgner eL Loys, In Lhe hve yeurs Lo
zo1z. n uddILIon, Lhose wILh u hIgher
Income Lend Lo LruveI more. n Lurn, Lhey
ure more IIkeIy Lo uLIIIze eL bourdIng
servIces or urchuse roducLs LhuL uIIow
more comIorL Ior boLh Lhem und LheIr
eL Lo LruveI LogeLher.
Demographics and lifestyle
The chunge In demogruhIcs und
IIIesLyIe oI househoIds Is uIso un
ImorLunL deLermInunL oI demund. I
househoIds ure IrequenLIy reIocuLIng or
workIng Ionger hours, Lhen Lhese IucLors
muy reduce u househoId`s wIIIIngness Lo
urchuse u eL. n uddILIon, househoIds
IIvIng In uurLmenLs ure Iess IIkeIy Lo
huve eLs sInce muny uurLmenLs do noL
uIIow eLs. On u osILIve noLe, ugIng
ouIuLIon muy Increuse demund Ior
eLs, sInce oIder demogruhIcs oILen
urchuse eLs Ior comunIonshI
uILer LheIr chIIdren und grundchIIdren
Ieuve home.
Major market segmentation (2012)
Total $14.7bn
28%
Consumers aged
45 to 54
7%
Consumers aged
65 and older
24%
Consumers aged
35 to 44
18%
Consumers aged
25 to 34
13%
Consumers aged
55 to 64
10%
Consumers aged
25 and younger
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM Pet Stores in the US December 2012 16
Products & Markets
International Trade
nLernuLIonuI Lrude ucLIvILy Is uccounLed
uL Lhe munuIucLurIng IeveI by
convenLIon; us such, LhIs reLuII IndusLry
does noL LechnIcuIIy huve ImorLs or
exorLs. However, roducLs und suIIes
In Lhe PeL SLores IndusLry ure ImorLed
und exorLed uL Lhe munuIucLurIng IeveI
und Lhen soId In Lhe domesLIc murkeL.
PrecIse exorL und ImorL duLu on eL
roducLs und suIIes Is noL reudIIy
uvuIIubIe us Lhey ure cuLegorIzed InLo
broud segmenLs LhuL conLuIn u Iurge
number oI oLher non-eL reIuLed
roducLs. However, Lrends In eL Iood
Lrude rovIde some InsIghL InLo Lrends
regurdIng overuII eL-roducL Lrude
IeveIs; Lhese ure IncIuded In Lhe AnImuI
ood ProducLIon IndusLry reorL
(BSWorId reorL 1111). AccordIng Lo
Lhe IuLesL oIhcIuI duLu rovIded by Lhe
nLernuLIonuI Trude CommIssIon,
ImorLs Ior uII kInds oI eL Iood ure
esLImuLed uL $1.z bIIIIon In zo1z, whIIe
exorLs ure esLImuLed uL $z.6 bIIIIon.
Cunudu Is Lhe IeudIng Lrude urLner Ior
boLh ImorLs und exorLs.
Major Markets
continued
who reresenL ubouL zq.o% oI revenue.
Consumers In LhIs murkeL LyIcuIIy huve
chIIdren, und Lhey consIder Lhe heuILh
und behuvIoruI benehLs u eL cun huve on
LheIr kIds. AccordIng Lo Lhe AmerIcun PeL
ProducLs AssocIuLIon, ubouL 8.o% oI
househoIds wILh chIIdren under 18 yeurs
oId own uL IeusL one eL.
Consumers beLween Lhe uges oI z
und q ure esLImuLed Lo uccounL Ior
18.o% oI Lhe murkeL. ThIs demogruhIc
grou uccounLs Ior u Iower shure us
Lhey ure oILen subjecL Lo busy
scheduIes, mukIng IL dIIhcuIL Ior Lhem
Lo own eLs. Consumers beLween Lhe
uges oI und 6q ure execLed Lo
reresenL 1.o% oI Lhe murkeL In zo1z.
However, LhIs hgure Is IorecusL Lo
Increuse over Lhe nexL hve yeurs us
consumers uged q Lo q grow oIder
und IncreusIngIy enLer LhIs cuLegory.
The Lwo smuIIesL murkeLs ure mude oI
consumers under Lhe uge oI z
(uccounLIng Ior 1o.o% oI Lhe murkeL)
und consumers over Lhe uge oI 6
(;.o%). Consumers In Lhese cuLegorIes
huve IImILed Income, Lhus decreusIng
LheIr ubIIILy Lo own or send on eLs. n
uddILIon, Lhese Lwo demogruhIcs oILen
do noL IIve In houses; ruLher, Lhey renL
uurLmenLs or IIve In reLIremenL homes.
Muny such dweIIIngs do noL uIIow eLs,
IurLher hInderIng LhIs segmenL`s ubIIILy
Lo own eLs.
WWW.IBISWORLD.COM Pet Stores in the US December 2012 17
Products & Markets
Business Locations 2012
MO
1.9
West West West West West
West
West
Rocky
Mountains Mountains Mountains Mountains Mountains Mountains Mountains Mountains Mountains Mountains Mountains Mountains Mountains Mountains Mountains Mountains Mountains Mountains
Plains Plains Plains Plains Plains Plains Plains
Southwest Southwest Southwest Southwest Southwest Southwest Southwest Southwest Southwest Southwest Southwest Southwest Southwest Southwest Southwest
Southeast SSoutheast Southeast Southeast Southeast Southeast Southeast Southeast Southeast Southeast Southeast Southeast Southeast Southeast Southeast Southeast Southeast Southeast Southeast Southeast Southeast Southeast Southeast Southeast Southeast
New
England g England
VT
0.3
MA
2.0
RI
0.5
NJ
3.3
DE
0.5
NH
0.7
CT
1.5
MD
1.9
DC
0.1
1
5
3
7
2
6
4
8 9
Additional States (as marked on map)
AZ
2.2
CA
13.2
NV
0.9
OR
2.0
WA
3.1
MT
0.3
NE
0.5
MN
1.7
IA
0.9
OH
3.9
VA
2.7
FL
7.7
KS
0.9
CO
2.6
UT
0.7
ID
0.5
TX
5.6
OK
0.9
NC
2.5
AK
0.2
WY
0.3
TN
1.5
KY
0.7
GA
2.2
IL
4.1
ME
0.6
ND
0.2
WI
1.9 MI
3.5
PA
4.4
WV
0.3
SD
0.2
NM
0.6
AR
0.5
MS
0.4
AL
1.0
SC
1.3
LA
1.0
HI
0.4
IN
2.0
NY
7.4
5
6
7
8
3
2
1
4
7
9
SOURCE: WWW.IBISWORLD.COM
t
Mid-
Atlantic Atlantic Atlantic Atlantic
Establishments (%)
Less than 3%
3% to less than 10%
10% to less than 20%
20% or more
Great
Lakes
WWW.IBISWORLD.COM Pet Stores in the US December 2012 18
Products & Markets
Business Locations
PeL SLores ure rImurIIy IocuLed In Lhe
SouLheusL, Lhe WesL, Lhe MId-ALIunLIc
und Lhe GreuL ukes regIons oI Lhe
UnILed SLuLes. ndusLry IocuLIons ure
bused rImurIIy on Lhe number oI
househoIds In euch regIon, us weII us Lhe
medIun Income IeveI oI househoIds.
Southeast
The SouLheusL hoIds Lhe hIghesL
number oI IndusLry esLubIIshmenLs; In
zo1z, z1.8% oI IndusLry esLubIIshmenLs
were IocuLed In Lhe regIon. The
SouLheusL Is Lhe mosL ouIuLed regIon
oI Lhe UnILed SLuLes wILh u quurLer oI
Lhe nuLIon`s ouIuLIon. ThereIore gIven
Lhe hIgher roorLIon oI househoIds
Lhere Is u greuLer demund Ior IndusLry
reLuIIers. WILhIn Lhe SouLheusL, IorIdu
hus Lhe hIghesL roorLIon oI IndusLry
esLubIIshmenLs, esLImuLed uL ;.;% oI Lhe
nuLIon`s LoLuI.
West
The WesL hus Lhe second-hIghesL
roorLIon oI IndusLry esLubIIshmenLs; In
zo1z, Lhe regIon hud 1q.8% oI eL sLores.
CuIIIornIu hus Lhe hIghesL number oI eL
sLores In Lhe counLry uL 1.z%. The
rImury reusons Ior Lhe hIgher-Lhun-
uveruge number oI eL sLores In Lhe WesL
regIon ure ouIuLIon densILy und
Income IeveIs. The WesL hus 1;.o% oI Lhe
nuLIon`s LoLuI ouIuLIon. urLhermore,
boLh CuIIIornIu und Nevudu huve u
hIgher-Lhun-uveruge medIun Income by
sLuLe. AddILIonuIIy, wILhIn CuIIIornIu
more Lhun z6% oI househoIds huve
Incomes wILhIn Lhe Lo Lhree quudrunLs.
Mid-Atlantic
The MId-ALIunLIc regIon hus 1;.6% oI
IndusLry esLubIIshmenLs. The mosL
ouIur sLuLes IncIude: New York und
PennsyIvunIu whIch uccounL Ior u
resecLIve ;.q% und q.q% oI Lhe
IndusLry`s IocuLIons. These sLuLes huve
some oI Lhe hIghesL ouIuLIons In Lhe
UnILed SLuLes due Lo LheIr Iurge
meLrooIILun cenLers. The regIon uIso
hus hIgher-Lhun-uveruge Income IeveIs.
GIven LhuL househoIds wILhIn Lhe
regIon huve u Iurger umounL oI
dIsosubIe Income, Lhey ure more ubIe
Lo uIIord Lo own u eL.
Great Lakes
The GreuL ukes regIon Is Lhe IourLh-
mosL ouIur IocuLIon Ior IndusLry
esLubIIshmenLs. n zo1z, 1.q% oI eL
sLores were IocuLed In Lhe GreuL ukes
regIon. IIInoIs Is Lhe hILh-hIghesL
ouIuLed sLuLe In Lhe nuLIon und
LhereIore u ouIur cenLer Ior IndusLry
oeruLors. The sLuLe hoIds un esLImuLed
q.1% oI eL sLores.
OLher smuII urLIcIuLIng regIons In
Lhe IndusLry IncIude: Lhe SouLhwesL, New
EngIund, Lhe PIuIns und Lhe Rocky
MounLuIns. Among Lhe uIoremenLIoned
regIons, Lhe SouLhwesL communds Lhe
IurgesL shure oI IndusLry esLubIIshmenLs
uL q.% oI Lhe LoLuI. These regIons huve
smuIIer consumer murkeLs, whIch
reduces demund Ior eL sLores.
%
30
0
10
20
S
o
u
t
h
w
e
s
t
W
e
s
t
G
r
e
a
t

L
a
k
e
s
M
i
d
-
A
t
l
a
n
t
i
c
N
e
w

E
n
g
l
a
n
d
P
l
a
i
n
s
R
o
c
k
y

M
o
u
n
t
a
i
n
s
S
o
u
t
h
e
a
s
t
Establishments
Population
Establishments vs. population
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM Pet Stores in the US December 2012 19
Key Success Factors
Attractive product presentation
n order Lo druw cusLomers und
encouruge urchuses, eye-cuLchIng
romoLIons und dIsIuys ure essenLIuI
Ior eL sLores.
Experienced work force
L Is ImorLunL Lo emIoy u hIghIy
cuubIe sLuII wILh cIeur knowIedge oI
Lhe eL IndusLry Lo beLLer ussIsL
cusLomers und boosL suIes.
Proximity to key markets
OeruLors need Lo be IocuLed In hIgh-
LruIhc und hIgh-vIsIbIIILy IocuLIons,
such us mujor shoIng recIncLs,
In order Lo muxImIze sLore LruIhc
und suIes.
Economies of scope
SuccessIuI oeruLors need u runge oI
Lhe mosL ouIur eLs und eL suIIes
uL dIIIerenL IeveIs oI rIce und quuIILy.
OIIerIng u wIder vurIeLy oI roducLs wIII
uLLrucL u Iurger cusLomer buse.
Effective quality control
OeruLors musL ensure LhuL eL servIces
ure u Lo sLundurd Ior Lhe secIhc Lye
oI unImuI und breed.
Market Share
Concentration
More Lhun huII (6.8%) oI Lhe PeL SLores
IndusLry`s revenue comes Irom Lwo
secIuILy suIy reLuIIers: PeLSmurL und
PETCO. The oLher orLIon oI Lhe IndusLry
consIsLs oI IumIIy-owned sLores, smuII
IrunchIses und smuII chuIns oI eL sLores.
The IndusLry hus u moderuLe IeveI oI
concenLruLIon wILh Lhe Lo Iour
comunIes generuLIng un esLImuLed
68.8% oI Lhe IndusLry`s revenue.
AILhough Lhere Is u moderuLe degree oI
murkeL shure concenLruLIon, smuII
oeruLors ure sLIII ubIe Lo hnd nIche
murkeLs In LheIr geogruhIcuI IocuLIons,
und rureIy exund beyond Lhose ureus.
BSWorId esLImuLes LhuL by Lhe end oI
zo1z, Lhe IndusLry wIII huve ubouL 1,61
hrms, oI whIch ubouL q.1% wIII be
oeruLed by u smuII busIness wILh no
emIoyees. AbouL 8.o% enLerrIses
huve Iewer Lhun hve emIoyees, whIIe
onIy ;.8% huve more Lhun 1o workers.
n Lhe hve yeurs Lo zo1;, mujor Iuyers
PeLSmurL und PETCO ure execLed Lo
grow LheIr shure oI Lhe IndusLry, wILh u
sLeudy sLreum oI cusLomers uLronIzIng
LheIr sLores. ThIs Is becuuse Lhese bIg-box
reLuIIers ure ubIe Lo oIIer cusLomers u
besL oI boLh worIds scenurIo, where
Lhey rovIde broud und IndusLry-secIhc
roducL seIecLIons, whIIe oeruLIng on u
scuIe such LhuL Lhey cun urchuse In buIk
und uss on suvIngs Lo Lhe consumers.
ConsequenLIy, Lhese sLores ure
execLed Lo grow uL Lhe exense oI
smuII sLores In Lhe IndusLry.
Competitive Landscape
Market Share Concentration | Key Success Factors | Cost Structure Benchmarks
Basis of Competition | Barriers to Entry | Industry Globalization
Companies by employment size
Number of employees Share (%)
0-4 83.0
5-9 9.3
10-19 5.3
20-99 2.1
100-499 0.3
500+ 0.1
SOURCE: US CENSUS BUREAU
Level
Concentration in this
industry is Medium
IBISWorld identies
250 Key Success
Factors for a
business. The most
important for this
industry are:
WWW.IBISWORLD.COM Pet Stores in the US December 2012 20
Competitive Landscape
Cost Structure
Benchmarks
Prot
The PeL SLores IndusLry Is execLed Lo
obLuIn uveruge rohL murgIns equIvuIenL
Lo .% oI revenue In zo1z, u Irom z.%
In zoo;. ThIs Increuse In rohLubIIILy hus
been drIven by u growIng eL ouIuLIon
und un IncreusIng wIIIIngness oI eL
owners Lo send on LheIr eLs, urLIcuIurIy
on remIum or hIgh-murgIn roducLs.
However, IL Is ImorLunL Lo noLe LhuL Lhe
ucLuuI IeveI oI murgIns muy vury
consIderubIy beLween IndusLry
urLIcIunLs. or InsLunce, Iurger Iuyers
such us PETCO und PeLSmurL LyIcuIIy
urchuse In Iurge quunLILIes, whIch enubIe
Lhem Lo send Iess er ILem und Imrove
murgIns. n uddILIon, LheIr Iurge scuIe
uIIows mujor Iuyers Lo seII In hIgh voIume
uL dIscounLed rIces, whIch enubIes Lhem
Lo uIIord Iower murkus buL Lo rohL Irom
Iurger suIes voIumes. On Lhe conLrury,
smuIIer Iuyers In LhIs IndusLry do noL
huve such urchusIng ower. ThereIore,
cosL oI goods er unIL Lends Lo be hIgher
Ior Lhese Iuyers, cuusIng murgIns Lo be
Iower Ior smuIIer hrms.
Purchases
Purchuse cosLs wIII remuIn Lhe sIngIe
IurgesL exense Ior Lhe IndusLry In zo1z,
uccounLIng Ior un esLImuLed ;o.% oI
LoLuI revenue. Purchuses IncIude u wIde
runge oI eL Iood und eL suIIes such
us coIIurs, Ieushes, medIcuLIon,
shumoos, dog kenneIs und eL Loys,
und u runge oI eLs IncIudIng dogs, cuLs,
bIrds, hsh, smuII unImuIs und reLIIes.
Purchuse exenses huve Increused
sIIghLIy over Lhe hve yeurs Lo zo1z.
AccordIng Lo PeL BusIness, u ubIIcuLIon
Ior Lhe eL und eL suIIes reLuIIIng
IndusLry, much oI LhIs growLh hus been
due Lo hIgher rIces Irom usLreum
IndusLrIes (I.e. munuIucLurIng und
whoIesuIIng IndusLrIes) ussed down
Lhe suIy chuIn.
Sector vs. Industry Costs
Q Prot
Q Wages
Q Purchases
Q Depreciation
Q Marketing
Q Rent & Utilities
Q Other
Average Costs of
all Industries in
sector (2012)
Industry Costs
(2012)
0
20
40
60
P
e
r
c
e
n
t
a
g
e

o
f

r
e
v
e
n
u
e
80
100
3.5
7.0
3.5
3.0
1.5
72.0
9.5
3.5
3.2
6.0
2.0
1.6
70.3
13.4
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM Pet Stores in the US December 2012 21
Competitive Landscape
Basis of Competition
Due Lo medIum burrIers Lo enLry und
growIng rohLubIIILy Irom remIum
roducLs und servIces, Lhere ure u Iurge
number oI eL sLore oeruLIons, gIvIng
Lhe IndusLry u medIum IeveI oI
comeLILIon. ThIs IndusLry hus been
growIng sLrongIy over Lhe usL decude us
u resuIL oI IuvorubIe demogruhIc Lrends
und Lhe growIng Lendency oI eL owners
Lo LreuL LheIr eLs us members oI Lhe
IumIIy. n recenL yeurs, IndusLry
urLIcIunLs huve Luken udvunLuge oI
Lhese Lrends und cushed In on hIgher
murgIn roducLs und servIces, such us
remIum eL Iood und hIgh-quuIILy
groomIng servIces.
The Iuyers In LhIs IndusLry ure
roLecLed Irom exLernuI comeLILIon In
Lhe remIum eL Iood roducL segmenL,
becuuse Lhere ure oILen munuIucLurer`s
resLrIcLIons on Lhe dIsLrIbuLIon oI
remIum roducLs Lo suermurkeLs.
ndusLry urLIcIunLs ure uIso roLecLed
Irom exLernuI comeLILIon Irom
suermurkeLs, grocery sLores und
dIscounL reLuIIers In Lhe growIng ureu oI
vuIue udded eL servIces such us
groomIng und obedIence LruInIng.
Internal
PeL sLores comeLe wILh euch oLher
bused on rIce, roducL vurIeLy,
cusLomer servIce, brund uwureness,
vurIeLy oI eL servIces und sLore IocuLIon.
SInce roducL urchuses muke u Lhe
mujorILy oI suIes Ior eL sLores, LheIr
muIn busIs oI comeLILIon Is roducL
runge und quuIILy, us weII us rIce. urge
Iuyers IIke PETCO und PeLSmurL
benehL Irom economIes oI scoe und ure
ubIe Lo rovIde broud runges oI eLs, eL
Ioods, eL suIIes und eL servIces wILh
dIIIerenL IeveIs oI quuIILy ucross u runge
oI rIces Lo ueuI Lo IndIvIduuI
consumer reIerences. n uddILIon, Lhey
ure cuubIe oI oIIerIng roducLs Lhrough
LheIr rIvuLe IubeI brunds uL u Iower
rIce. BoLh oI Lhese Iuyers benehL Irom
beIng ubIe Lo buy roducLs In buIk und
roducIng LheIr own roducLs uL Iower
Cost Structure
Benchmarks
continued
Wages
Due Lo Lhe Iubor-InLensIve nuLure oI Lhe
reLuII secLor, wuges ure esLImuLed Lo muke
u Lhe second-hIghesL exense ILem Ior
eL sLore oeruLors, uccounLIng Ior 1.q%
oI Lhe revenue In zo1z. n eL sLores,
Iubor Is needed Lo rovIde cure Ior eLs,
muInLuIn sLock IeveIs und rovIde
cusLomer servIce. urLhermore, udded
Iocus hus been Iuced on Iubor over Lhe
hve yeurs Lo zo1z, us eL servIces huve
become one oI Lhe IusLesL-growIng
sources oI revenue Ior Lhe IndusLry.
NoneLheIess, IndusLry revenue hus been
growIng uL u IusLer ruLe Lhun Lhe number
oI emIoyees or wuges; us such, wuges us
u shure oI revenue huve sIIghLIy decIIned.
Depreciation
DerecIuLIon exenses ure execLed Lo
uccounL Ior ubouL 1.6% oI IndusLry
revenue In zo1z. ThIs Iow IeveI oI
derecIuLIon Is LyIcuI Ior reLuIIIng
IndusLrIes, whIch ure very Iubor InLensIve
und requIre mInImuI cuILuI cosLs In
oeruLIons. However, LhIs hgure Is hIgh
comured wILh oLher reLuIIIng IndusLrIes
becuuse eL sLores musL ucquIre secIuI
cuges und Lunks Ior unImuIs, In uddILIon
Lo sheIvIng und cush regIsLers Ior sLores.
RenLuI cosLs und uLIIILIes cosLs ure
execLed Lo reresenL .o% und 1.o% oI
LoLuI revenue, resecLIveIy, In zo1z.
Other costs
OeruLors In LhIs IndusLry uIso Incur u
vurIeLy oI oLher exenses, IncIudIng
udmInIsLruLIve, Insurunce, securILy und
udverLIsIng cosLs. n urLIcuIur, boLh
Iurge und smuII oeruLors InvesL much oI
LheIr Income In udverLIsIng Lo generuLe
sLore LruIhc und boosL suIes.
Level & Trend
Competition in
this industry is
Medium and the
trend is Increasing
WWW.IBISWORLD.COM Pet Stores in the US December 2012 22
Competitive Landscape
Barriers to Entry
HIgh IeveIs oI comeLILIon und sLrIngenL
reguIuLIons ussocIuLed wILh enLerIng LhIs
IndusLry muy deLer some Irom enLerIng
Lhe IndusLry. NeverLheIess, Lhere ure
vurIous nIche murkeLs uvuIIubIe Ior new
Iuyers Lo occuy, secIhcuIIy Lhose LhuL
secIuIIze In remIum und InnovuLIve
Iood, roducLs und servIces.
A sIgnIhcunL IucLor LhuL cun hInder un
oeruLor Irom enLerIng LhIs IndusLry Is
governmenL reguIuLIons. There ure
IederuI und sLuLe Iuws reguIuLIng eL
shos und Lhe suIe oI unImuIs. or
exumIe, Lhe PeL AnImuIs AcL 1q1
requIres eL shos Lo geL u IIcense In
uccordunce wILh Lhe AcL beIore Lhey cun
oen. n uddILIon, Lhe AnImuI WeIIure
AcL oI 1q66 dIcLuLes how eLs soId In eL
sLores musL be muInLuIned. PeL shos
need Lo uddress u runge oI Issues und
receIve IIcenses bused on IederuI und
sLuLe requIremenLs beIore ermIssIon Lo
oeruLe Is grunLed.
The IndusLry`s concenLruLIon cun be
unoLher burrIer Lo oLenLIuI enLrunLs.
There ure onIy Lwo nuLIonuI reLuII chuIns
In LhIs IndusLry und LogeLher Lhey
uccounL Ior over huII oI IndusLry
revenue; smuIIer sLores und IrunchIses
uccounL Ior Lhe remuInIng orLIon.
AILhough LhIs IndusLry Is hIghIy
IrugmenLed, Lhere Is uIso InLense rIce
comeLILIon Irom muss merchundIsers,
onIIne oeruLors und cuLuIog reLuIIers,
whIch muy rovIde u burrIer Ior new,
IndeendenL reLuIIers.
Basis of Competition
continued
cosL, whIch uIIows Lhem Lo oIIer
roducLs uL u Iow rIce und sLIII uLLuIn u
rohL. As u resuIL, smuIIer sLores IeeI Lhe
ressure Lo rovIde more roducLs uL u
Iower rIce, whIch resuILs In Iower
murk-us by Lhese sLores und uILImuLeIy
Iower rohL murgIns. However, smuIIer
sLores benehL Irom LheIr ubIIILy Lo oIIer
ersonuIIzed cusLomer servIces und
moId Lo Lhe secIhc needs oI Lhe nIche
murkeL In LheIr IocuI ureu.
The Lwo mujor Iuyers In LhIs IndusLry
uIso InvesL consIderubIe resources Lowurd
brund uwureness und IoyuILy. or
exumIe, PETCO Is now Lhe mujor
sonsor oI PETCO Purk, Lhe new home oI
Lhe Sun DIego Pudres. n uddILIon, boLh
PETCO und PeLSmurL ure heuvIIy
InvoIved In eL churILIes und unImuI
weIIure orgunIzuLIons. n zooq, PeLSmurL
InLroduced u new cusLomer IoyuILy
rogrum In order Lo Imrove reeuL
cusLomer LruIhc.
External
HIsLorIcuIIy, Lhe suIe oI eL Iood
roducLs hus been rImurIIy Lhrough
Lhe suermurkeL chunneI. urge
suermurkeLs sLock u wIde vurIeLy oI
eL Iood und suIIes. BuIk urchuses
by suermurkeLs generuIIy enubIe
Lhem Lo oIIer Iower rIces Lhun
secIuILy reLuIIers. n recenL yeurs,
uddILIonuI comeLILIon hus come Irom
muss merchundIsers und dIscounL
reLuIIers such us WuImurL und CosLco
LhuL sLock u wIde vurIeLy oI roducLs uL
comeLILIve rIces. However, muss
merchundIsers und dIscounL reLuIIers
do noL seII uILru-remIum eL
roducLs us Lhey ure IImILed by
munuIucLurers` resLrIcLIons.
urLher comeLILIon comes Irom Lhe
E-commerce und OnIIne AucLIons
IndusLry (BSWorId reorL qq11u) und
Lhe MuII-Order IndusLry (BSWorId
reorL qq11b). These comeLIng
IndusLrIes IncIude comunIes such us
PeLsLore.com Lhrough whIch consumers
cun urchuse roducLs wILhouL
hysIcuIIy huvIng Lo vIsIL u sLore;
however, Lhese oeruLors ure noL
cIussIhed us urL oI LhIs IndusLry. n
uddILIon, some comeLILIon comes Irom
veLerInury servIces us Lhey uIso seII
cusLomIzed eL Iood und some roducLs.
Level & Trend
Barriers to Entry
in this industry are
Medium and Steady
WWW.IBISWORLD.COM Pet Stores in the US December 2012 23
Competitive Landscape
Industry
Globalization
ThIs IndusLry Is churucLerIzed by u Iurge
number oI smuII Iuyers. Muny oI Lhe
smuIIer, IndeendenL eL suIy reLuIIers
ure IumIIy-owned busInesses LhuL oeruLe
wILhIn u IocuI or regIonuI scoe. n
uddILIon, Lhe IndusLry`s mujor comunIes
ure domesLIcuIIy owned. ThereIore, LhIs
IndusLry hus u Iow IeveI oI gIobuIIzuLIon.
Barriers to Entry
continued
OenIng u new eL sLore und meeLIng
IIcensIng sLundurds Is exensIve. n
uddILIon, u sIgnIhcunL shure oI IundIng
muy be dIrecLed Lowurd murkeLIng Lo
buIId consumer InLeresL und
recognILIon. The InILIuI cosL oI
esLubIIshIng or urchusIng u reLuII
ouLIeL, In uddILIon Lo urchusIng und
muInLuInIng InvenLory IeveIs, muy be u
burrIer Ior new enLrunLs. BurrIers ure
greuLer Ior new smuIIer reLuIIers becuuse
IormIng reIIubIe suIy reIuLIonshIs
wILh whoIesuIers und munuIucLurers
muy rove Lo be dIIhcuIL. ExIsLIng und
weII esLubIIshed dIsLrIbuLIon
reIuLIonshIs muy deLer oLenLIuI
oeruLors Irom enLerIng LhIs IndusLry, us
IL rovIdes un udvunLuge Lo exIsLIng
reLuIIers by gIvIng uccess Lo Iow rIced
hIgh quuIILy goods.
Barriers to Entry checklist Level
Competition Medium
Concentration Medium
Life Cycle Stage Growth
Capital Intensity Low
Technology Change Medium
Regulation & Policy Medium
Industry Assistance None
SOURCE: WWW.IBISWORLD.COM
Level & Trend
Globalization in this
industry is Low and
the trend is Steady
WWW.IBISWORLD.COM Pet Stores in the US December 2012 24
Player Performance
SInce ILs esLubIIshmenL In 1q8;, PhoenIx-
bused PeLSmurL hus become Lhe Lo
secIuILy reLuIIer oI eL Iood und suIIes.
PeLSmurL oeruLes 1,z6q sLores, LyIcuIIy
IocuLed In regIonuI shoIng cenLers neur
oLher suersLores und wurehouse sLores,
und emIoys ubouL o,ooo eoIe In Lhe
UnILed SLuLes und Cunudu. By oIIerIng
more Lhun 1o,ooo eL roducLs und
rovIdIng vurIous eL servIces, Lhe
reLuIIer uIms Lo rovIde u one-sLo
shoIng exerIence wILh Iow rIces.
PeLSmurL cuLegorIzes ILs roducLs InLo
Lhree muIn cuLegorIes: consumubIes, hurd
goods und eLs. ConsumubIes IncIude eL
Ioods, LreuLs und IILLer, In uddILIon Lo
remIum roducLs, muny oI whIch ure
noL Iound In suermurkeLs or muss
merchundIsers. PeL suIIes such us
coIIurs, Ieushes, heuILh und beuuLy uIds,
shumoos, medIcuLIon, Loys, eL currIers,
dog kenneIs, cuL IurnILure, equesLrIun
suIIes, bIrdcuges, uquurIums und hILers
muke u Lhe hurd goods cuLegory. PeLs
soId by Lhe comuny IncIude hsh, bIrds,
reLIIes und smuII eLs. urger unImuIs
such us cuLs und dogs ure noL soId In
PeLSmurL; however, Lhey ure uvuIIubIe Ior
udoLIon Lhrough Lhe PeLSmurL ChurILIes`
AdoLIon Progrum deveIoed wILh
humune orgunIzuLIons.
n uddILIon Lo seIIIng roducLs,
PeLSmurL hus exunded ILs servIce
oIIerIng Lo IncIude In-sLore bourdIng
IucIIILIes, groomIng servIces, obedIence
LruInIng und IuII-servIce veLerInury
servIces. n zooz, PeLSmurL Iuunched u
comIeLe eL bourdIng und duy-cure
servIce cuIIed PeLsHoLeI wILh zq-hour
suervIsIon, un on-sILe veLerInurIun,
uIr-condILIoned rooms und duIIy secIuILy
LreuLs. AbouL 1q PeLSmurL sLores IncIude
PeLsHoLeI bourdIng IucIIILIes und DoggIe
Duy Cums. PeL servIces currenLIy
uccounL Ior 11.z% oI revenue Ior Lhe
comuny, u Irom q.8% In zoo;.
PeLSmurL hus conLInued Lo exund ILs
nuLIonwIde resence Lhrough ucquIsILIons
und sLore exunsIons, growIng by z61
sLores over Lhe usL hve yeurs. DurIng Lhe
hrsL nIne monLhs oI zo1z, Lhe comuny
exunded ILs sLore IocuLIons by ; new
sLores. n zo11, Lhe comuny oened q
more sLores. However, Lwo evenLs huve
dumuged Lhe comuny`s reuLuLIon durIng
Lhe usL hve yeurs. n zoo8, PeLSmurL
susended Lhe suIe oI bIrds In ILs sLores
nuLIonwIde uILer dIscoverIng LhuL u hIgh
number oI bIrds currIed u bucLerIuI
InIecLIon LhuL hud Lhe oLenLIuI Lo sreud
Lo humuns. n uddILIon, Lhe comuny wus
Major Companies
PetSmart Inc. | PETCO Animal Supplies Inc. | Other Companies
36.2%
Other
PetSmart Inc. 43.1%
PETCO Animal Supplies Inc. 20.7%
SOURCE: WWW.IBISWORLD.COM
Major players
(Market share)
PetSmart Inc.
Market share: 43.1%
PetSmart Inc. (US operations)
nancial performance
Year
Revenue
($ million) (% change)
2007 4,500 N/C
2008 4,900 8.9
2009 5,100 4.1
2010 5,400 5.9
2011 5,800 7.4
2012* 6,350 9.5
*Estimate
SOURCE: ANNUAL REPORT
WWW.IBISWORLD.COM Pet Stores in the US December 2012 25
Major Companies
Player Performance
EsLubIIshed In 1q6, PETCO AnImuI
SuIIes Is Lhe second-IurgesL eL suIy
secIuILy reLuIIer In Lhe UnILed SLuLes.
The comuny Is heudquurLered In Sun
DIego, CA, und bousLs ubouL 1,1o sLores
ucross Lhe counLry wILh IocuLIons In uII o
sLuLes, mukIng IL Lhe onIy eL sLore Lo
serve Lhe enLIre nuLIon. Ls sLores curry u
Lo 1o,ooo dIIIerenL eL-reIuLed ILems uL
uny LIme, IncIudIng eL Iood, coIIurs,
Ieushes, groomIng roducLs, Loys, heuILh
und beuuLy uIds, kenneIs und eL houses.
Ike oLher IndusLry urLIcIunLs, PETCO
oIIers u vurIeLy oI veLerInury und
obedIence servIces Ior unImuIs, buL does
noL seII cuLs or dogs. RuLher, un udoLIon
rogrum (Lhe ThInk AdoLIon IrsL
rogrum) Is used In urLnershI wILh
IocuI unImuI weIIure orgunIzuLIons.
Over Lhe usL decude, PETCO hus been
subjecL Lo severuI mujor chunges In ILs
busIness. n zo11, PETCO ucquIred
Player Performance
continued
dumuged by u Iurge recuII oI eL Ioods
(munuIucLured by Menu oods) LhuL wus
conLumInuLed by meIumIne und
meIumIne-reIuLed comounds.
Financial performance
Over Lhe hve yeurs Lo zo1z, PeLSmurL`s
revenue Irom ILs US oeruLIons Is
execLed Lo Increuse uL un uveruge unnuuI
ruLe oI ;.1% Lo $6.q bIIIIon. As Lhe
economy guIns LrucLIon und consumers
guIn uddILIonuI dIsosubIe Income Lo
send on LheIr eLs, BSWorId
unLIcIuLes LhuL comuny suIes wIII grow
q.% In zo1z, IoIIowIng u ;.q% Increuse
In zo11 und sLrong growLh In zo1o. n
hscuI zooq und zoo8, PeLSmurL osLed
sLrong suIes, wILh revenue rIsIng q.1%
und .q%, resecLIveIy. Such growLh ruLes
durIng Lhe recessIon were uIded by
resIIIenL IndusLry demund; consumers
bureIy scuIed buck sendIng on LheIr
Iour-Iegged comunIons even when
Incomes IeII. To LhIs end, uveruge sume-
sLore suIes Increused 1.q% und .8% In
zooq und zoo8, resecLIveIy, whIIe
servIce suIes Increused q.z% und 1.8% In
zooq und zoo8, resecLIveIy.
BeIore Lhe recessIon, Lhe comuny
erIormunce wus even sLronger, wILh
1o.q% revenue growLh In zoo;. Some oI
Lhe growLh wus drIven by 11z new sLore
oenIngs, us weII us u z.q% Increuse In
comurubIe sLore suIes. n uddILIon,
hIgher demund Ior eL servIces becume
un IncreusIngIy ImorLunL suIes uvenue.
AILer PeLSmurL udded new PeLsHoLeIs
LhuL oIIered groomIng, LruInIng, bourdIng
und duy cum, servIce suIes rose zz.o%
durIng Lhe yeur.
PetSmart Inc. nancial performance
Year
Revenue
($ million) (% change)
Operating Income
($ million) (% change)
2007 4,672.7 10.4 351.5 39.8
2008 5,065.3 8.4 369.9 5.2
2009 5,336.4 5.4 369.1 -0.2
2010 5,693.8 6.7 428.7 16.1
2011 6,113.3 7.4 503.1 17.4
2012* 6,706.3 9.7 553.4 10.0
*Estimate
SOURCE: ANNUAL REPORT AND IBISWORLD
PETCO Animal
Supplies Inc.
Market share: 20.7%
WWW.IBISWORLD.COM Pet Stores in the US December 2012 26
Major Companies
Other Companies
PeLSmurL und PETCO ure Lhe Lo dogs
In Lhe PeL SLores IndusLry, uccounLIng
Ior more Lhun huII oI LoLuI IndusLry
revenue In zo1z. WhIIe Lhe IndusLry Is
concenLruLed uL Lhe Lo, Lhe resL oI Lhe
IndusLry Is churucLerIzed by u Iurge
number oI smuII und rIvuLeIy owned
eL sLores. n IucL, ubouL q.1% oI
comunIes ure nonemIoyers.
urLhermore, ubouL 8.o% oI comunIes
emIoy Iewer Lhun hve workers, whIIe
onIy ;.8% huve more Lhun 1o workers.
Due Lo LhIs IrugmenLed nuLure, Lhe vusL
mujorILy oI IndusLry Iuyers do noL
IndIvIduuIIy conLrIbuLe u consIderubIe
shure oI Lhe IndusLry`s revenue.
Pet Supplies Plus
Estimated market share: 3.6%
PeL SuIIes PIus Is u IrunchIse busIness
oeruLIng zq sLores ucross z sLuLes. PeL
SuIIes PIus oIIers IrunchIses In seIecLed
sLuLes Lo sIngIe sLore owner-oeruLors
und uIso Lo ureu deveIoers who own uII
sLores In u desIgnuLed murkeL regIon.
AccordIng Lo comuny InIormuLIon, Lhe
Player Performance
continued
ComIeLe PeLmurL, un OhIo-bused eL
secIuILy chuIn. The ucquIsILIon,
consIsLIng oI zq sLores, exunded Lhe
comuny`s reuch InLo OhIo und Lhe
SouLheusL regIon. n zoo6, Texus PucIhc
Grou und eonurd Green & PurLners
Look Lhe comuny rIvuLe Ior Lhe second
LIme; Lhe deuI wus vuIued uL $1.8 bIIIIon,
IncIudIng ussumed debL. The sume grou
Look PETCO rIvuLe Ior $6oo.o mIIIIon In
zooo, buL PETCO reLurned Lo Lhe ubIIc
domuIn In zooz.
Financial performance
Becuuse Lhe comuny wenL rIvuLe In
zoo6, PETCO`s hnuncIuIs ure no Ionger
uvuIIubIe Lo Lhe ubIIc, IImILIng Lhe ubIIILy
Lo rovIde yeur-by-yeur unuIysIs oI
hnuncIuI erIormunce. However,
BSWorId rojecLs LhuL, IIke Lhe IndusLry
us u whoIe, Lhe hrm hus exerIenced
osILIve growLh In Lhe hve yeurs Lo zo1z.
BSWorId esLImuLes LhuL PETCO`s
revenue wIII LoLuI $.1 bIIIIon In zo1z,
murkIng un uveruge q.q% unnuuI Increuse
over Lhe hve-yeur erIod.
SLrong suIes oI remIum roducLs ure
execLed Lo be Lhe muIn drIver Ior Lhe
growLh. The comuny InvesLed heuvIIy In
LhIs roducL segmenL In zooq by
IuunchIng UnIeushed, u secIuILy sLore Ior
onIy remIum, nuLuruI, orgunIc und ruw
eL Ioods. PETCO oeruLes ; UnIeushed
sLores In CuIIIornIu, MuryIund,
MussuchuseLLs, New York, VIrgInIu und
Lhe DIsLrIcL oI CoIumbIu.
Petco Animal Supplies Inc. nancial performance*
Year
Revenue
($ million) (% change) Employees (% change)
2007 2,400 9.1 20,100 2.7
2008 2,550 6.3 22,000 9.5
2009 2,700 5.9 23,200 5.5
2010 2,800 3.7 23,500 1.3
2011 2,855 2.0 24,400 3.8
2012 3,050 6.8 25,500 4.5
*Estimates
SOURCE: FORBES.COM
WWW.IBISWORLD.COM Pet Stores in the US December 2012 27
Major Companies
Other Companies
continued
urchuse oI u PeL SuIIes PIus IrunchIse
cosLs beLween $6z,oo und $1.q mIIIIon.
PeL SuIIes PIus sLores ure generuIIy
IocuLed In hIgh-LruIhc ureus und ure
IImILed Lo ubouL ,ooo Lo 6,ooo squure
IeeL In sIze Ior smuIIer murkeLs und ;,ooo
Lo q,ooo squure IeeL In Iurger
meLrooIILun ureus. The smuIIer sLore
conceL wus desIgned Lo kee oeruLIng
cosLs Lo u mInImum In u bId Lo oIIer eL
Iood und suIIes uL comeLILIve rIces.
The comuny uIso uses u jusL-In-LIme
deIIvery sysLem Lo oIIer u wIde vurIeLy oI
roducLs wILhouL exLensIve sLore suce Lo
sLock InvenLory. BSWorId esLImuLes
LhuL PeL SuIIes PIus wIII generuLe ubouL
$qo.o mIIIIon In zo1z, uccounLIng Ior
ubouL .6% oI Lhe murkeL.
Pet Supermarket Inc.
Estimated market share: 1.4%
WILh u murkeL shure oI Iess Lhun z.o%,
PeL SuermurkeL nc. Is u smuII, IumIIy-
owned reLuIIer oI eL suIIes und
medIcInes. PeL SuermurkeL oeruLes
ubouL 1z; sLores rImurIIy In IorIdu
buL uIso In AIubumu, CuIIIornIu,
GeorgIu, KenLucky, Nevudu und NorLh
CuroIInu. The comuny emIoys ubouL
1,qoo ussocIuLes. PeL SuermurkeL seIIs
more Lhun 8,ooo eL cure roducLs,
IncIudIng Iood, Loys, medIcIne und
cIoLhIng, us weII us smuII unImuIs such
us humsLers, guIneu Igs, rubbILs und
LroIcuI hsh. BSWorId esLImuLes LhuL
PeL SuermurkeL wIII generuLe ubouL
$z1.o mIIIIon In zo1z.
WWW.IBISWORLD.COM Pet Stores in the US December 2012 28
Capital Intensity
The PeL SLores IndusLry, sImIIur Lo mosL
oLher reLuII IndusLrIes, hus u Iow IeveI oI
cuILuI InLensILy. or every doIIur senL
on wuges, ubouL $o.1z Is InvesLed In Lhe
sLore und equImenL. MosL cuILuI cosLs
ure reIuLed Lo sheIvIng, sLore, comuLers,
cushIer equImenL und oLher equImenL
such us cugIng Ior unImuIs, whIch do noL
need Lo be consLunLIy reIuced. On Lhe
oLher hund, LhIs IndusLry Is Iubor
InLensIve becuuse emIoyees ure needed
Lo oeruLe und munuge Lhe sLores,
rovIde cusLomer servIce und suorL,
resLock Lhe merchundIse und Lo rovIde
cure Ior eLs.
The IeveI oI cuILuI InLensILy hus
remuIned sLeudy In Lhe IusL hve yeurs,
reecLIng Lhe Iubor-InLensIve nuLure oI
Lhe reLuII IndusLry. To LhIs oInL, Lhe
cosL oI Iubor wILhIn LhIs IndusLry Is
reIuLIveIy hIgh comured Lo LhuL
exerIenced by comeLILors such us
Operating Conditions
Capital Intensity | Technology & Systems | Revenue Volatility
Regulation & Policy | Industry Assistance
Tools of the Trade: Growth Strategies for Success
SOURCE: WWW.IBISWORLD.COM
L
a
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I
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s
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v
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C
a
p
i
t
a
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I
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t
e
n
s
i
v
e
Change in Share of the Economy
New Age Economy
Recreation, Personal Services,
Health and Education. Firms
benet from personal wealth so
stable macroeconomic conditions
are imperative. Brand awareness
and niche labor skills are key to
product differentiation.
Traditional Service Economy
Wholesale and Retail. Reliant
on labor rather than capital to
sell goods. Functions cannot
be outsourced therefore rms
must use new technology
or improve staff training to
increase revenue growth.
Old Economy
Agriculture and Manufacturing.
Traded goods can be produced
using cheap labor abroad.
To expand rms must merge
or acquire others to exploit
economies of scale, or specialize
in niche, high-value products.
Investment Economy
Information, Communications,
Mining, Finance and Real
Estate. To increase revenue
rms need superior debt
management, a stable
macroeconomic environment
and a sound investment plan.
E-Commerce & Online Auctions
Animal Food Production
Mail Order
Toy, Doll & Game Manufacturing
Veterinary
Services
Mail Mail Mail Ma Mail Mail il Mail Mail Ma Ma Ma Ma Mail Mail Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Mail Mail Mail Mail Mail il O Mail il Mail il Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma OOO il O O il O il il O il O il O il OOO Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma Ma O il OOO il O OOOO il O OOOOOO
Pet Stores
Capital intensity
0.5
0.0
0.1
0.2
0.3
0.4
SOURCE: WWW.IBISWORLD.COM
Dotted line shows a high level of capital intensity
Capital units per labor unit
Pet Stores Retail Trade Economy
Level
The level of capital
intensity is Low
WWW.IBISWORLD.COM Pet Stores in the US December 2012 29
Operating Conditions
Revenue Volatility
PeL sLores seII dIscreLIonury (e.g. eLs und
Loys) und nondIscreLIonury roducLs (e.g.
eL Iood). WhIIe urchusIng u eL Is
generuIIy dIscreLIonury, u Iurge
roorLIon oI exendILure on u eL Is
nondIscreLIonury; Lhese IncIude Iood und
medIcIne. To rovIde u breukdown, eL
Iood mukes u ubouL 8.o% oI IndusLry
revenue, eL suIIes und medIcIne
uccounL Ior z;.%, whIIe new eL
urchuses reresenL Ior onIy q.%. As
such, Lhe nondIscreLIonury comonenL oI
Technology
& Systems
TechnoIogIcuI udvunces In LhIs IndusLry
huve IncIuded comuLer scunnIng cush
regIsLers und uuLomuLed InvenLory
equImenL. The InLroducLIon oI LhIs
LechnoIogy hus enubIed reLuIIers Lo
beLLer munuge eIhcIency oI oeruLIons
und InvenLory. TechnoIogy uL checkouL
hus Ied Lo comuLerIzed oInL-oI-suIe
equImenL, whIch conLroIs und records
merchundIsIng, dIsLrIbuLIon, suIes und
sLock murkdowns. urLhermore, bur
code scunnIng hus oIIered Lhe
udvunLuges oI hIgher Iubor roducLIvILy
LhuL Increuses Lhe seed uL whIch
InIormuLIon Is ussed, greuLer conLroI
over Lhe dIsLrIbuLIon oI goods und
reduced errors uIong Lhe suIy chuIn.
New ImrovemenLs wIII boosL revenue
Ior Lhe Iurger sLores who cun uIIord Lo
InvesL In Lhe LechnoIogIes. or
exumIe, Iurger reLuIIers wIII benehL
Irom RudIo requency denLIhcuLIon
(RD), whIch rovIdes reuI LIme
InIormuLIon on InvenLory und heI Lo
reduce shrInkuge robIems us weII us
Imrove eIhcIency.
Capital Intensity
continued
suermurkeLs, muss merchundIsers und
onIIne eL suIy reLuIIers. ThIs Is
becuuse Lhe oLher sLores do noL reLuII
eLs dIrecLIy whIch InherenLIy requIres u
smuIIer sLuII. n uddILIon, Lhese sLores
do noL Incur cosLs ussocIuLed wILh
emIoyee LruInIng, sInce workers uL
Lhese reLuIIers do noL requIre IndusLry-
secIhc knowIedge. or onIIne reLuIIers,
Iubor cosLs ure exceLIonuIIy Iow us Lhey
ure noL requIred Lo ouLIuy exendILure
on cusLomer servIce, nor ure Lhey
requIred Lo huve sheIvIng, dIsIuys or
cush regIsLers.
Level
The level of
Technology Change
is Medium
SOURCE: WWW.IBISWORLD.COM
Volatility vs Growth
R
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e

v
o
l
a
t
i
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i
t
y
*

(
%
)
1000
100
10
1
0.1
Five year annualized revenue growth (%)
30 10 10 30 50 70
Hazardous
Stagnant
Rollercoaster
Blue Chip
* Axis is in logarithmic scale
A higher level of revenue
volatility implies greater
industry risk. Volatility can
negatively affect long-term
strategic decisions, such as
the time frame for capital
investment.
When a rm makes poor
investment decisions it
may face underutilized
capacity if demand
suddenly falls, or capacity
constraints if it rises
quickly.
Pet Stores
Level
The level of
Volatility is Low
WWW.IBISWORLD.COM Pet Stores in the US December 2012 30
Operating Conditions
Regulation & Policy
There ure IndusLry secIhc und generuI
comeLILIve reguIuLIons LhuL uIy Lo LhIs
IndusLry. The LrunsorLuLIon, hundIIng
und suIe oI smuII eLs ure governed by
vurIous IederuI, sLuLe und IocuI
reguIuLIons. n uddILIon, IndusLry
urLIcIunLs ure subjecL Lo
envIronmenLuI reguIuLIons Imosed by
IederuI, sLuLe und IocuI uuLhorILIes In
reIuLIon Lo Lhe generuLIon, hundIIng,
sLoruge, LrunsorLuLIon und dIsosuI oI
wusLe und bIohuzurdous muLerIuIs, und
Lhe suIe und dIsLrIbuLIon oI roducLs.
The PeL AnImuIs AcL 1q1 deems IL un
oIIense Lo oen u eL sho unIess IL Is
grunLed u IIcense In uccordunce wILh Lhe
AcL. When decIdIng Lo grunL u IIcense,
dIsLrIcL councIIs need Lo consIder
wheLher Lhere Is suILubIe
uccommoduLIon und enough Iood und
wuLer, wheLher Lhe unImuIs ure soId uL
Loo young un uge und wheLher
reusonubIe recuuLIons huve been Luken
Lo curb Lhe sreud oI dIseuse. The
AnImuI WeIIure AcL (AWA) roLecLs
cerLuIn unImuIs Irom Inhumune
LreuLmenL und negIecL. The AWA
requIres LhuL mInImum sLundurds oI cure
und LreuLmenL be rovIded Ior cerLuIn
unImuIs LhuL ure bred Ior commercIuI
suIe, used In reseurch, LrunsorLed
commercIuIIy or exhIbILed Lo Lhe ubIIc.
ReLuII eL shos ure noL covered under
Lhe AcL unIess Lhe sho seIIs exoLIc or
zoo unImuIs or seIIs unImuIs Lo reguIuLed
busInesses. PeLs owned by rIvuLe
cILIzens ure noL reguIuLed. ReguIuLed
busInesses ure requIred Lo kee uccuruLe
records oI ucquIsILIon und dIsosILIon
und u descrILIon oI unImuIs LhuL come
InLo LheIr ossessIon.
Muny sLuLe und IocuI governmenLs
huve ussed uddILIonuI unImuI weIIure
IegIsIuLIon. AbouL 1; sLuLes huve
reguIuLIons governIng Lhe suIe oI dogs
und 1q sLuLes govern Lhe suIe oI cuLs.
These reguIuLIons sLIuIuLe Lhe
InIormuLIon LhuL seIIers musL rovIde uL
Lhe LIme oI urchuse und vurIous oLIons
buyers huve II Lhe urchused eL Is sIck.
These sLuLes huve reguIuLIons LhuL uIIow
consumers Lo obLuIn u reImbursemenL
when u sIck unImuI Is urchused Irom u
eL sLore. ThIs Is known us u Iemon Iuw
whIch Is desIgned Lo roLecL consumers
LhuL buy unImuIs Irom eL shos.
Revenue Volatility
continued
IndusLry merchundIse uccounLs Ior Lhe
mujorILy oI IndusLry revenue. ThIs hIgh
IeveI oI nondIscreLIonury demund kees
Lhe voIuLIIILy oI LhIs IndusLry Iow. To LhIs
oInL, yeur-on-yeur revenue ucLuuLIons
uveruged z.1% over Lhe hve yeurs Lo zo1z.
Level & Trend
The level of
Regulation is
Medium and the
trend is Steady
WWW.IBISWORLD.COM Pet Stores in the US December 2012 31
Operating Conditions
Industry Assistance
The PeL SLores IndusLry does noL receIve
uny secIhc governmenL suorL, In Lhe
Iorm oI subsIdIes or oLherwIse.
However, Lhere ure severuI Lrude
ussocIuLIons whIch reresenL Lhe
IndusLry. MosL noLubIe umong Lhem Is
Lhe AmerIcun PeL AssocIuLIon whIch
romoLes eL ownershI und
dIssemInuLes IndusLry-reIuLed
InIormuLIon Lo members.
Key tariffs
Goods Low rate High rate
Saddlery and harness for any animal (excluding dogs) 2.8 2.8
Dog leashes, collars, muzzles, harnesses and similar 2.4 2.4
Pet food 0.0 0.0
SOURCE: USITC
Level & Trend
The level of
Industry Assistance
is None and the
trend is Steady
WWW.IBISWORLD.COM Pet Stores in the US December 2012 32
Key Statistics
Revenue
($m)
Industry
Value Added
($m)
Establish-
ments Enterprises Employment Exports Imports
Wages
($m)
Domestic
Demand
Number of Pets
- Cats and Dogs
(Million)
2003 10,234.7 1,987.3 15,835 13,790 88,620 -- -- 1,441.3 N/A 143
2004 11,064.5 2,102.1 16,541 14,213 90,933 -- -- 1,512.5 N/A 153
2005 11,486.7 2,078.9 16,813 14,483 98,384 -- -- 1,469.9 N/A 163
2006 11,925.2 2,330.0 17,130 14,558 101,237 -- -- 1,690.0 N/A 154
2007 12,872.9 2,400.4 17,638 14,804 109,870 -- -- 1,813.8 N/A 163
2008 13,246.2 2,442.9 17,110 14,115 106,460 -- -- 1,818.9 N/A 165
2009 13,338.9 2,516.9 16,650 13,632 109,167 -- -- 1,816.3 N/A 171
2010 13,712.4 2,604.2 16,502 13,305 105,327 -- -- 1,865.3 N/A 165
2011 14,164.9 2,701.9 16,651 13,411 107,749 -- -- 1,915.7 N/A 169
2012 14,745.7 2,803.5 16,867 13,613 110,443 -- -- 1,975.9 N/A 173
2013 15,424.0 2,920.2 17,137 13,817 113,867 -- -- 2,049.0 N/A 177
2014 16,102.7 3,040.9 17,480 14,093 118,991 -- -- 2,140.4 N/A 181
2015 16,730.7 3,137.3 17,847 14,347 123,379 -- -- 2,225.2 N/A 185
2016 17,098.7 3,252.0 18,257 14,662 126,957 -- -- 2,283.5 N/A 189
2017 17,799.8 3,319.5 18,750 15,014 131,522 -- -- 2,370.2 N/A 193
Sector Rank 46/119 42/119 46/119 41/119 44/119 N/A N/A 47/119 N/A N/A
Economy Rank 441/1149 571/1149 247/1148 239/1148 302/1149 N/A N/A 503/1149 N/A N/A
IVA/Revenue
(%)
Imports/
Demand
(%)
Exports/Revenue
(%)
Revenue per
Employee
($000)
Wages/Revenue
(%)
Employees
per Est.
Average Wage
($)
Share of the
Economy
(%)
2003 19.42 N/A N/A 115.49 14.08 5.60 16,263.82 0.02
2004 19.00 N/A N/A 121.68 13.67 5.50 16,633.13 0.02
2005 18.10 N/A N/A 116.75 12.80 5.85 14,940.44 0.02
2006 19.54 N/A N/A 117.79 14.17 5.91 16,693.50 0.02
2007 18.65 N/A N/A 117.16 14.09 6.23 16,508.60 0.02
2008 18.44 N/A N/A 124.42 13.73 6.22 17,085.29 0.02
2009 18.87 N/A N/A 122.19 13.62 6.56 16,637.81 0.02
2010 18.99 N/A N/A 130.19 13.60 6.38 17,709.61 0.02
2011 19.07 N/A N/A 131.46 13.52 6.47 17,779.28 0.02
2012 19.01 N/A N/A 133.51 13.40 6.55 17,890.68 0.02
2013 18.93 N/A N/A 135.46 13.28 6.64 17,994.68 0.02
2014 18.88 N/A N/A 135.33 13.29 6.81 17,987.92 0.02
2015 18.75 N/A N/A 135.60 13.30 6.91 18,035.48 0.02
2016 19.02 N/A N/A 134.68 13.35 6.95 17,986.40 0.02
2017 18.65 N/A N/A 135.34 13.32 7.01 18,021.32 0.02
Sector Rank 49/119 N/A N/A 86/119 49/119 45/119 90/119 42/119
Economy Rank 937/1149 N/A N/A 845/1149 746/1149 802/1148 1043/1149 571/1149
Figures are ination-adjusted 2012 dollars. Rank refers to 2012 data.
Revenue
(%)
Industry
Value Added
(%)
Establish-
ments
(%)
Enterprises
(%)
Employment
(%)
Exports
(%)
Imports
(%)
Wages
(%)
Domestic
Demand
(%)
Number of Pets
- Cats and Dogs
(%)
2004 8.1 5.8 4.5 3.1 2.6 N/A N/A 4.9 N/A 7.0
2005 3.8 -1.1 1.6 1.9 8.2 N/A N/A -2.8 N/A 6.5
2006 3.8 12.1 1.9 0.5 2.9 N/A N/A 15.0 N/A -5.5
2007 7.9 3.0 3.0 1.7 8.5 N/A N/A 7.3 N/A 5.8
2008 2.9 1.8 -3.0 -4.7 -3.1 N/A N/A 0.3 N/A 1.2
2009 0.7 3.0 -2.7 -3.4 2.5 N/A N/A -0.1 N/A 3.6
2010 2.8 3.5 -0.9 -2.4 -3.5 N/A N/A 2.7 N/A -3.5
2011 3.3 3.8 0.9 0.8 2.3 N/A N/A 2.7 N/A 2.4
2012 4.1 3.8 1.3 1.5 2.5 N/A N/A 3.1 N/A 2.4
2013 4.6 4.2 1.6 1.5 3.1 N/A N/A 3.7 N/A 2.3
2014 4.4 4.1 2.0 2.0 4.5 N/A N/A 4.5 N/A 2.3
2015 3.9 3.2 2.1 1.8 3.7 N/A N/A 4.0 N/A 2.2
2016 2.2 3.7 2.3 2.2 2.9 N/A N/A 2.6 N/A 2.2
2017 4.1 2.1 2.7 2.4 3.6 N/A N/A 3.8 N/A 2.1
Sector Rank 44/119 58/119 64/119 52/119 40/119 N/A N/A 42/119 N/A N/A
Economy Rank 370/1149 481/1149 548/1148 425/1148 365/1149 N/A N/A 392/1149 N/A N/A
Annual Change
Key Ratios
Industry Data
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM Pet Stores in the US December 2012 33
Jargon & Glossary
BARRIERS TO ENTRY High barriers to entry mean that
new companies struggle to enter an industry, while low
barriers mean it is easy for new companies to enter an
industry.
CAPITAL INTENSITY Compares the amount of money
spent on capital (plant, machinery and equipment) with
that spent on labor. IBISWorld uses the ratio of
depreciation to wages as a proxy for capital intensity.
High capital intensity is more than $0.333 of capital to
$1 of labor; medium is $0.125 to $0.333 of capital to $1
of labor; low is less than $0.125 of capital for every $1 of
labor.
CONSTANT PRICES The dollar gures in the Key
Statistics table, including forecasts, are adjusted for
ination using the current year (i.e. year published) as
the base year. This removes the impact of changes in
the purchasing power of the dollar, leaving only the
real growth or decline in industry metrics. The ination
adjustments in IBISWorlds reports are made using the
US Bureau of Economic Analysis implicit GDP price
deator.
DOMESTIC DEMAND Spending on industry goods and
services within the United States, regardless of their
country of origin. It is derived by adding imports to
industry revenue, and then subtracting exports.
EMPLOYMENT The number of permanent, part-time,
temporary and seasonal employees, working proprietors,
partners, managers and executives within the industry.
ENTERPRISE A division that is separately managed and
keeps management accounts. Each enterprise consists
of one or more establishments that are under common
ownership or control.
ESTABLISHMENT The smallest type of accounting unit
within an enterprise, an establishment is a single
physical location where business is conducted or where
services or industrial operations are performed. Multiple
establishments under common control make up an
enterprise.
EXPORTS Total value of industry goods and services sold
by US companies to customers abroad.
IMPORTS Total value of industry goods and services
brought in from foreign countries to be sold in the
United States.
INDUSTRY CONCENTRATION An indicator of the
dominance of the top four players in an industry.
Concentration is considered high if the top players
account for more than 70% of industry revenue.
Medium is 40% to 70% of industry revenue. Low is less
than 40%.
INDUSTRY REVENUE The total sales of industry goods
and services (exclusive of excise and sales tax); subsidies
on production; all other operating income from outside
the rm (such as commission income, repair and service
income, and rent, leasing and hiring income); and
capital work done by rental or lease. Receipts from
interest royalties, dividends and the sale of xed
tangible assets are excluded.
INDUSTRY VALUE ADDED (IVA) The market value of
goods and services produced by the industry minus the
cost of goods and services used in production. IVA is
also described as the industrys contribution to GDP, or
prot plus wages and depreciation.
INTERNATIONAL TRADE The level of international
trade is determined by ratios of exports to revenue and
imports to domestic demand. For exports/revenue: low is
less than 5%, medium is 5% to 20%, and high is more
than 20%. Imports/domestic demand: low is less than
5%, medium is 5% to 35%, and high is more than
35%.
LIFE CYCLE All industries go through periods of growth,
maturity and decline. IBISWorld determines an
industrys life cycle by considering its growth rate
(measured by IVA) compared with GDP; the growth rate
of the number of establishments; the amount of change
the industrys products are undergoing; the rate of
technological change; and the level of customer
acceptance of industry products and services.
NONEMPLOYING ESTABLISHMENT Businesses with
no paid employment or payroll, also known as
nonemployers. These are mostly set up by self-employed
individuals.
PROFIT IBISWorld uses earnings before interest and tax
(EBIT) as an indicator of a companys protability. It is
calculated as revenue minus expenses, excluding
interest and tax.
VOLATILITY The level of volatility is determined by
averaging the absolute change in revenue in each of the
past ve years. Volatility levels: very high is more than
20%; high volatility is 10% to 20%; moderate
volatility is 3% to 10%; and low volatility is less than
3%.
WAGES The gross total wages and salaries of all
employees in the industry. The cost of benets is also
included in this gure.
Industry Jargon
IBISWorld Glossary
HUMANIZATION A trend where pet owners treat pets
as humans, providing them with services such as pet
hotels and grief counseling.
JUST-IN-TIME (JIT) A strategy implemented to
improve protability by reducing inventory and
purchasing the raw materials that are needed for the
immediate term only.
PET BOARDING AND DAY-CARE Long- and short-term
options for owners who need assistance looking after
their pets. Services include feeding, walking, grooming
and lodging.
PET PARENTS Pet owners who are enthusiastic about
their pets and treat them as members of their family.
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