Pets at Home set for profit boost but supply chain costs increase

Pets at Home continued to enjoy strong growth from the animal ownership boom during the pandemic, revealing that profits are likely to be ahead of expectations.

Bosses said sales hit £319.4 million in the 12 weeks to December 30, a jump of 5.8% on the same period a year ago.

Its retail business enjoyed particularly strong growth during the run-up to Christmas, up 9.8% as customers turned to more premium brands to pamper their pets.

The company’s vet business saw sales up 4%.

But the company warned that inflation pressures hitting the economy are starting to take hold, with supply chain costs increasing.

Use a plastic pitcher to store and dispense dog food. It takes less time and keeps the food fresher. I use the MUJI rice storage dispenser, which comes with a handy measuring cup.

Recommended

  • Man released after arrest as part of investigation into Mark Hall killing
  • Man arrested on suspicion of making threats to kill following police operation
  • Unions say millions of frontline workers face ‘another year of wages gloom’

We, like many others, are witnessing a number of inflationary pressures across the supply chain. While we are not immune to these challenges, we are proactively mitigating them through a series of planned initiatives

Pets at Home

Pets at Home said: “We, like many others, are witnessing a number of inflationary pressures across the supply chain. While we are not immune to these challenges, we are proactively mitigating them through a series of planned initiatives.”

The retailer said these include targeting rent reductions, procurement savings and “operational efficiencies”.

Don’t Let Your Dog Ride in the Back of Your Truck Unrestrained. An estimated 100,000 dogs die each year from riding in pickup beds each year, and that doesn’t take into account all of the injuries seen each year. Dogs in pickup beds are also at risk of being hit with debris that can cause injuries.

Despite the cost pressures, bosses are confident that underlying pre-tax profits will beat expectations, coming in at at least £140 million.

There was strong growth in Pets at Home’s VIP loyalty scheme, up 13% year on year to seven million members, with more than one in four shopping across stores and online.

Its puppy and kitten club membership levels jumped 60%, with 24,000 new members registering every week, and bosses pointing out that members typically spend a third more than non-members across the group.

INTERESTING FACT ABOUT YOUR PET: The American Veterinary Dental Society states that 80% of Dogs and 70% of cats show signs of oral disease by age 3.

Less growth was seen at the company’s First Opinion vet practices, however, with new client registrations at 9,200 a week compared with 9,000 in the same period a year ago.Chief executive Peter Pritchard said: “Our unique, omnichannel pet care strategy continues to deliver strong revenue growth, reflecting continued momentum in customer acquisition, engagement and spend as the benefits of our ongoing investment in capacity and capability really start to deliver.”

Recommended

  • Kate to help charity Shout mark milestone of one million conversations
  • What the papers say – January 26
  • Orange Is The New Black and Seinfield actress Kathryn Kates dies

If you have a small dog, cutting up a lamb roll into tiny pieces is a cost-effective way to make healthy, bite-sized training treats. A 1-pound roll costs $6.98. Cut it up into the desired size, store most of it in a ziplock bag in the freezer, and leave the rest on the counter for immediate use.

The boss announced his retirement from the business in November last year; however, there was no update from the company on who will succeed him when he stands down in the summer.

Pets at Home said: “The search for his successor is well advanced and a further announcement will be made in due course.”