The pet business is one of retail’s long-term bright spots. But the dynamics of alternate sourcing, internet sales and aggressive competition challenge two of the large big box retailers.
Private-equity firms bought America’s two biggest pet-store owners within months of each other. One spent billions to boost its online business by acquiring the top internet pet retailer. The other focused on getting people back in stores. About three years later, neither strategy is a clear winner.
Source: Wall Street Journal, February 20, 2019. Link.
Former executives and analysts say one problem is that pet food carries relatively small margins. Amazon has an advantage because it can bundle a range of products in the same shipment to offset the high cost of shipping heavy bags of dog food or cat litter.
INSIGHTS: Animal health pros can learn about the challenges of big box and internet retailers in this article. Sharing it during conversations will help maintain clarity on the challenges of meeting dynamic customers’ expectations.