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        Pet & Pet Supplies Stores Industry Profile

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        Excerpt from Pet & Pet Supplies Stores Industry Profile

        Companies in this industry operate physical retail establishments that sell pets, pet foods, and pet supplies. Major companies include Petco, Petland, and PetSmart (all based in the US); along with Global Pet Foods and Pet Valu (both based in Canada), and Pets at Home (UK).

        The global pet and pet supply store market is concentrated in the Americas, Europe, and the Asia/Pacific region; pets are less common in South Asia, Africa, and the Middle East. Major pet populations exist in Argentina, Mexico, Russia, and the US, according to GfK. However, the largest pet market by a wide margin is the US.

        The US pet and pet supply store industry includes about 10,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $18 billion.

        COMPETITIVE LANDSCAPE

        Pet ownership drives demand, and spending generally resists economic cycles. Profitability for individual companies depends on the ability to generate store traffic and effective merchandising. Large companies offer low prices and wide selections of both products and services. Small companies compete effectively by serving a local market, selling unique products, offering specialized services, or providing pet expertise. The US industry is concentrated: the four largest companies account for more than two-thirds of revenue.

        Competitors include grocery stores, warehouse clubs, mass merchandisers, internet retailers, and some veterinary clinics. By offering the premium pet food brands pet owners want at competitive prices, mass merchandisers and online ...

         
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