BUSINESS - Stores Expand as Pet Industry Grows

Petco is expanding their retail presence having opened five new stores in July and done extensive renovation to 13 Seattle locations.

The Seattle market makeover and new store openings are part of the company's overall goal to significantly expand its national footprint by the end of the year.

At the same time, Pet Supplies Plus has signed 20 deals across the country resulting in 55 new stores this year.

Pet Supplies Plus is the leading pet franchise chain in the U.S. with a total of 360 stores.

Why the expansion and renovation in such a short time?

It’s simple - pet industry spending continues to rise.

The American Pet Products Association (APPA) reported total spending of $60.28 billion in 2015 and is projecting an increase to $62.75 billion this year.

“The steady growth of the pet industry is credited to cognizant pet owners looking for natural products for their pets and an increase in the amount of households with pets, which is now roughly 75 percent of the country. Pet Supplies Plus’ growth is exceeding that of the industry and on track to open 55 locations this year, a record year for the company,” David Leonardo, senior vice president for franchising at Pet Supplies Plus, said in a release.

The pet industry appears to be one of the most recession-resistant. As people cut back household expenses they still want to provide the best to their animal companions.

Since 1994, the industry has grown every year by at least $1 billion, according to the APPA. From 2006 to 2011, the industry grew by 32 percent.

As reported in InfoStream in July, PetSmart, the largest specialty pet retailer in North America, is also growing by 80 stores this fiscal year.

It’s interesting that more stores are being built when there is such a shift to online purchasing in general.

However, Petco is including services such as a grooming salon, dog training area and in-store Vetco clinics in the new Wellness Centers and mobile clinics that cannot be provided online.

And Pet Supplies Plus will be launching its own e-commerce capabilities in 2017.

Pet Supplies Plus Expanding Brand

Partnering with Franchise America Finance, Pet Supplies Plus will be making $15 million USD available to franchise candidates. America Finance specializes in debt and equity placement. It will be offering Pet Supplies Plus franchise candidates and current franchise owners financing solutions. Pet Supplies Plus will use this money to grow their brand in several American cities. Franchise

Pet Supplies Plus Vice President of Franchising, Alex Roberts said, “We are honored to work with the well-respected team at Franchise America Finance as we continue to grow the Pet Supplies Plus franchise into new territories and expand our presence in current markets. The partnership with FAF will help qualified candidates accelerate the ownership process to get their stores open quicker.”

Pet Supplies Plus opened 30 stores in 2014 and plans on expanding with 17 new franchisees in 2015. Roberts said, “In addition to this recent partnership, our team has continued to build a strong business model for franchisees including increased support from our corporate headquarters, an optimized distribution process and a prototype designed for maximum unit-level economics.”

   

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