Beruflich Dokumente
Kultur Dokumente
WWW.IBISWORLD.COM
Britanny Carter
15 International Trade
Industry Definition
16 Business Locations
Main Activities
Similar Industries
18 Competitive Landscape
31 Industry Data
Additional Resources
31 Annual Change
31 Key Ratios
3 Industry at a Glance
30 Industry Assistance
31 Key Statistics
4 Industry Performance
21 Barriers to Entry
Executive Summary
22 Industry Globalization
Current Performance
23 Major Companies
Industry Outlook
23 PetSmart Inc.
27 Operating Conditions
12 Supply Chains
27 Capital Intensity
13 Demand Determinants
28 Revenue Volatility
14 Major Markets
WWW.IBISWORLD.COM
Main Activities
Retailing pets
Retailing pet food and supplies
Providing pet grooming and boarding services
The major products and services in this industry are
Live animals
Pet food
Pet services
Pet supplies
Similar Industries
Additional Resources
WWW.IBISWORLD.COM
Industry at a Glance
Pet Stores in 2015
Key Statistics
Snapshot
Revenue
Profit
Wages
Businesses
$17.5bn 3.7%
$1.4bn $2.4bn
% change
PETCO Animal
Supplies Inc.
23.3%
12
210
200
190
Millions
PetSmart Inc.
38.6%
0
-4
-8
Year 07
12,933
Market Share
3.1%
180
170
160
09
Revenue
11
13
15
17
19
21
150
Year 06
08
10
12
14
16
18
20
Employment
SOURCE: WWW.IBISWORLD.COM
p. 23
9.0%
Number of pets
(cats and dogs)
4.7%
Live animals
Pet services
45.7%
Pet food
Number of households
40.6%
Pet supplies
p. 4
SOURCE:
WWW.IBISWORLD.COM
SOURCE:
WWW.IBISWORLD.COM
Industry Structure
Growth
Regulation Level
Medium
Low
Technology Change
Medium
Low
Barriers to Entry
Medium
Industry Assistance
None
Concentration Level
Medium
FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 31
Industry Globalization
Low
Competition Level
High
WWW.IBISWORLD.COM
Industry Performance
The
WWW.IBISWORLD.COM
Industry Performance
200
190
% change
Millions
180
170
160
150
Year 06
0
-1
-2
08
10
12
14
16
18
20
-3
Year
08
10
12
14
16
18
20
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Industry Performance
Industry revenue
8
6
% change
Current
Performance
4
2
0
Year 07
09
11
13
15
17
19
21
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Industry Performance
Competition from
bigger stores
Supermarkets
have lured
customers away from
smaller specialty stores
have lured in price-conscious consumers,
allowing larger stores to capture a higher
share of the market. Moreover, many
consumers have gravitated online to
purchase competitively priced products;
e-commerce stores can sell products at
lower prices while maintaining profit
margins because they do not maintain a
retail storefront and, therefore, avoid the
costly rental rates associated with
high-traffic retail space.
High-end goods are primarily sold
through specialty pet stores and other
niche retailers, providing a degree of
guaranteed sales for operators, shielding
them from direct competition. This is
because manufacturers typically place
restrictions on ultra-premium pet
products, selling them only to specialty
pet stores. Such restrictions have aided
niche retailers targeting the high-end
market over the past five years.
Big-box specialty stores, such as
PetSmart and Petco, combine the best of
both worlds; these stores offer a broad
selection of pet products and operate on a
scale large enough to pass cost savings
down to consumers. Furthermore, many
large stores also provide premium
products, a factor that has augmented
competition for small specialty stores. As
a result, big-box stores have posted
healthy gains over the five-year period.
WWW.IBISWORLD.COM
Industry Performance
Industry
Outlook
A
WWW.IBISWORLD.COM
Industry Performance
five years.
With improving economic conditions,
demand for specialized pet services is
expected to continue. During the past five
years, pet services have served as primary
Changing
competition
With
improving economic
conditions, demand for
specialized pet services is
expected to continue
product marketing will become
increasingly important as each operator
attempts to set itself apart from other
stores. For example, personalized diets for
pets are expected to serve as a potential
niche market for industry operators,
including special food catered to obese
animals Since many pet owners have
become concerned with their pets health,
the creation of options to improve pet
health presents a potential opportunity for
industry operators. Several pet food
manufacturers have identified potential
growth in customized food options, taking
into consideration pet breeds, life stages,
daily activities, amount of time indoors
and specific medical conditions.
WWW.IBISWORLD.COM
Industry Performance
Life Cycle Stage
20
Maturity
Quality Growth
Company
consolidation;
level of economic
importance stable
15
10
Quantity Growth
Pet Stores
Veterinary Services
Animal Food Production
Decline
-5
Shrinking economic
importance
-10
-10
-5
10
15
20
WWW.IBISWORLD.COM
Industry Performance
industry
is G
rowing
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Supply Chain
Consumers in the US
The Pet Stores industry relies on consumers to purchase pet products and to utilize industry
services.
31111
33993
54194
9.0%
4.7%
Live animals
Pet services
45.7%
Pet food
40.6%
Pet supplies
Total $17.5bn
Pet food
Because food is a necessity for all pets, it
is not surprising that pet foods make up
the largest product segment for the
industry. This segment covers a wide
range of products such as dry and wet
food for dogs and cats, bird feed, crickets
and worms for reptiles, and other treats
and supplements for a number of
different household pets. In the past five
years, retailers have increasingly
provided all-natural and organic food
products. These premium pet foods tend
to be higher priced with larger markups,
a factor which has benefited industry
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Pet supplies
Products in this segment include over-thecounter medicines, food bowls, collars and
leashes, pet clothing, brushes and combs,
shovels and scoopers, cat litter, cages
birds and reptiles, travel carriers and any
other various accessories for pets. During
the past five years, this segments share of
revenue has increased largely due to rising
spending on over-the-counter medicine
products, totaling at 40.6% of industry
revenue. Spending on pet medicine has
increased due to the soaring cost of
pharmaceuticals, as well as higher
standards of routine care. Other pet
supplies and accessories sold by industry
retailers also face competition from
supermarkets and grocery stores,
namely because there are no regulations
that limit their sale. To this point, pet
supplies are being increasingly sold at a
variety of retail outlets such as home
improvements stores.
Services
Pet services have been the fastest-growing
product segment for the industry over the
past five years, reaching an estimated
9.0% of the total during the year. Pet
Demand
Determinants
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Demand
Determinants
continued
Major Markets
4.6%
Consumers aged
75 and older
Consumers aged under 25
5.5%
11.4%
24.6%
Consumers aged 45 to 54
Consumers aged 65 to 74
15.7%
Consumers aged 25 to 34
21.6%
Consumers aged 55 to 64
Total $17.5bn
16.6%
Consumers aged 35 to 44
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Major Markets
continued
International Trade
WWW.IBISWORLD.COM
West
New
England
AK
0.2
Great
Lakes
WA
ND
MT
3.0
Rocky
Mountains
ID
OR
1.9
West NV
0.7
1.7
SD
0.2
WY
0.5
MN
0.2
0.3
Plains
CO
0.6
KY
1.0
OK
0.8
NC
2.6
TN
AZ
NM
2.3
0.6
Southwest
TX
5.5
HI
0.4
2 NH
3 MA
4 RI
5 CT
6 NJ
7 DE
8 MD
0.3
1.5
0.8
3.5
2.2
0.5
SC
Southeast
0.5
MS
AL
0.9
1.2
GA
2.2
0.4
LA
0.9
FL
8.1
Establishments (%)
0.5
1.9
AR
0.3
1.5
13.0
WV VA
2.7
0.8
1.8
CA
West
3.9
MO
KS
2.5
OH
1.8
4.1
4.5
IN
IL
0.5
UT
PA
3.6
0.8
0.5
1 2
3
NY
7.6
5 4
MI
1.8
IA
NE
0.3
WI
ME
MidAtlantic
9 DC
0.1
Less than 3%
3% to less than 10%
10% to less than 20%
20% or more
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
20
West
The West has the second-highest
proportion of pet stores in the country;
the region is estimated to have 19.2% of
industry stores. California has the highest
number of pet stores in the country at
13.2%. The primary reasons for the
higher-than-average number of pet stores
in the West are population density and
income levels. The West has 17.1% of the
nations total population; furthermore,
both California and Nevada have higherthan-average median incomes by state.
Mid-Atlantic
The Mid-Atlantic region has an estimated
18.1% of pet stores. The most popular
states include New York and
Pennsylvania, which account for a
respective 7.6% and 4.5% of the
industrys locations. These states have
some of the highest populations in the
United States due to their large
metropolitan centers. The region also has
10
Southwest
Southeast
Plains
New England
Rocky Mountains
Establishments
Mid-Atlantic
0
Great Lakes
Southeast
The Southeast holds the highest number
of industry establishments; 22.1% of pet
stores are estimated to be in the region.
The Southeast is the most populated
region of the United States with one
quarter of the nations population. Given
the higher proportion of households,
there is a greater demand for industry
retailers. Within the Southeast, Florida
has the highest number of pet stores, at
8.1% of the nations total.
West
Business Locations
Population
SOURCE: WWW.IBISWORLD.COM
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18
Competitive Landscape
industry is M
edium
identifies
250 Key Success
Factors for a
business. The most
important for this
industry are:
Cost Structure
Benchmarks
Economies of scope
Successful operators need a range of the
most popular pets and pet supplies at
different levels of price and quality.
Offering a wider variety of products will
attract a larger customer base.
Profit
Industry profit, as measured by earnings
before interest and taxes, is expected to
grow to 8.2% of revenue in 2015, up from
5.5% in 2010. A growing pet population and
an increasing willingness of pet owners to
spend on their pets, particularly on
premium or high-margin products, has
driven this increase in profitability.
Furthermore pet stores are increasingly
offering pet services, which typically have
higher margins. It is important to note,
however, that the actual level of margins
WWW.IBISWORLD.COM
19
Competitive Landscape
Wages
Due to the labor-intensive nature of the
retail sector, wages are estimated to make
up the second-highest expense item for pet
store operators, accounting for 13.6% of the
revenue in 2015. In pet stores, employees
are needed to provide care for pets,
maintain stock levels and provide customer
service. Furthermore, added focus has been
placed on labor in the five years to 2015, as
pet services have become one of the
fastest-growing sources of industry revenue.
Nonetheless, industry revenue has been
growing at a faster rate than the number of
employees or wages; wages as a share of
revenue have declined slightly from 13.9%
in 2010.
Depreciation
Depreciation expenses are expected to
account for about 1.1% of revenue in 2015.
Industry Costs
(2015)
3.2
8.8
100
n Profit
n Wages
n Purchases
n Depreciation
n Marketing
n Rent & Utilities
n Other
8.2
13.6
80
Percentage of revenue
Cost Structure
Benchmarks
continued
60
71.5
62.9
40
20
0.8
4.7
9.2
1.8
1.1
7.8
4.8
1.6
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
20
Competitive Landscape
Cost Structure
Benchmarks
continued
Other costs
In 2015, rental and utilities costs are
expected to represent 7.8% of revenue
respectively. Operators incur other expenses
including administrative, insurance, security
and advertising costs. Both large and small
operators invest 1.6% of revenue toward
marketing and advertising to generate
traffic and boost sales.
Basis of Competition
in
this industry is
Highand the trend
is I ncreasing
Internal
Pet stores compete with each other based
on price, product variety, customer service,
brand awareness, variety of pet services
and store location. Since product purchases
make up the majority of sales for pet stores,
their main basis of competition is product
range, quality and price. Large players like
External
Historically, supermarkets have been the
primary sellers of pet food products.
Large supermarkets stock a wide variety
of pet food and supplies. Bulk purchases
by supermarkets generally enable them to
offer lower prices than specialty retailers.
In recent years, additional competition
has come from mass merchandisers and
discount retailers such as Walmart and
Costco that stock a wide variety of
products at competitive prices.
WWW.IBISWORLD.COM
21
Competitive Landscape
Basis of Competition
continued
Barriers to Entry
High
Medium
Growth
Low
Medium
Medium
None
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
22
Competitive Landscape
Industry
Globalization
Level & Trend
lobalization
G
in this
industry is L owand
the trend is S
teady
WWW.IBISWORLD.COM
Major Companies
Major players
(Market share)
38.1%
Other
Player Performance
PetSmart Inc.
Market share: 38.6%
Since its establishment in 1987, Phoenixbased PetSmart has become the top
specialty retailer of pet food and supplies.
PetSmart operates 1,333 stores, typically
located in regional shopping centers near
other superstores and warehouse stores.
The company employs about 53,000
people in the United States and Canada.
By offering more than 11,000 pet
products and providing various pet
services, PetSmart aims to provide a
one-stop shopping experience. In March
2015, the company went private through
an $8.3 billion buyout by BC Partners.
PetSmart categorizes its merchandise
into three main categories: consumables,
hard goods and pets. Consumables
include pet foods, treats and litter, as well
as premium products, many of which are
not found in supermarkets or mass
merchandisers. Pet supplies, such as
collars, leashes, health and beauty aids,
shampoos, medication, toys, pet carriers,
SOURCE: WWW.IBISWORLD.COM
(% change)
Operating Income
($ million)
(% change)
2010-11
5,400.0
5.9
406.6
15.3
2011-12
5,800.0
7.4
475.8
17.0
2012-13
6,400.0
10.3
616.7
29.6
2013-14
6,543.1
2.2
655.9
6.4
2014-15
6,653.7
1.7
668.2
1.9
2015-16
6,962.6
4.6
755.5
13.1
Year**
WWW.IBISWORLD.COM
Major Companies
Player Performance
continued
Player Performance
PETCO Animal
Supplies Inc.
Market share: 23.3%
(% change)
Operating Income
($ million)
2010-11
2,840.4
N/C
175.2
N/C
2011-12
3,070.8
8.1
223.8
27.7
2012-13
3,457.5
12.6
281.5
25.8
2013-14
3,720.4
7.6
293.2
4.1
2014-15
3,927.1
5.6
275.7
-6.0
2015-16
4,208.3
7.2
306.2
11.1
Year**
(% change)
WWW.IBISWORLD.COM
Major Companies
Player Performance
continued
Financial performance
IBISWorld estimates that in the five years
to 2015, the companys US revenue
generated from brick and mortar stores will
rise at an annualized rate of 8.2% to $4.2
billion. Strong sales of premium products
have been one of the companys main
drivers of growth. PETCO invested heavily
in this product segment amid the recession
when it launched Unleashed, a specialty
store for premium, natural, organic and raw
pet foods.
Other Companies
WWW.IBISWORLD.COM
Major Companies
Other Companies
continued
WWW.IBISWORLD.COM
Operating Conditions
Level
The level
of capital
intensity is L ow
Capital intensity
Economy
Retail Trade
Pet Stores
Information, Communications,
Mining, Finance and Real
Estate. To increase revenue
firms need superior debt
management, a stable
macroeconomic environment
and a sound investment plan.
Capital Intensive
Labor Intensive
Pet Stores
Veterinary Services
Mail Order
Toy, Doll & Game Manufacturing
Old Economy
Agriculture and Manufacturing.
Traded goods can be produced
using cheap labor abroad.
To expand firms must merge
or acquire others to exploit
economies of scale, or specialize
in niche, high-value products.
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Operating Conditions
Capital Intensity
continued
Technology & Systems During the past five years, there have
Level
The level
of
Technology Change
is M
edium
Revenue Volatility
Level
The level
of
Volatility is L ow
WWW.IBISWORLD.COM
Operating Conditions
Volatility vs Growth
1000
Revenue Volatility
continued
Hazardous
Rollercoaster
100
10
Pet Stores
1
0.1
Stagnant
30
10
Blue Chip
10
30
50
70
Regulation is
Mediumand the
trend is S
teady
WWW.IBISWORLD.COM
Operating Conditions
Industry Assistance
Level & Trend
he level of
T
Industry Assistance
is N
oneand the
trend is S
teady
WWW.IBISWORLD.COM
31
Key Statistics
Industry Data
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Sector Rank
Economy Rank
Industry
Revenue Value Added Establish($m)
($m)
ments
13,468.9
2,420.6
17,130
13,710.0
2,711.0
17,644
14,212.6
3,131.7
17,110
14,309.3
2,786.9
16,650
14,643.4
2,993.2
16,502
15,152.9
3,189.8
16,345
16,157.3
3,593.7
16,810
16,647.1
3,662.6
16,715
16,979.6
3,716.0
16,775
17,518.5
4,016.8
17,154
18,056.4
4,135.1
17,507
18,476.5
4,231.2
17,635
19,221.6
4,402.7
18,072
19,820.7
4,535.2
18,444
20,423.2
4,670.1
18,839
40/63
35/63
39/63
479/1373
556/1373
315/1373
Enterprises Employment
14,558
101,235
14,804
109,802
14,115
106,912
13,632
109,595
13,305
106,103
13,064
107,454
13,212
110,294
12,924
112,982
12,830
114,356
12,933
118,945
13,027
122,928
12,945
127,414
13,071
130,944
13,168
135,160
13,269
137,089
37/63
37/63
320/1373
332/1373
Exports
---------------N/A
N/A
Enterprises Employment
(%)
(%)
1.7
8.5
-4.7
-2.6
-3.4
2.5
-2.4
-3.2
-1.8
1.3
1.1
2.6
-2.2
2.4
-0.7
1.2
0.8
4.0
0.7
3.3
-0.6
3.6
1.0
2.8
0.7
3.2
0.8
1.4
26/63
3/63
742/1373
262/1373
Exports
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Imports
---------------N/A
N/A
Wages
($m)
1,869.9
1,931.8
2,015.0
2,008.5
2,034.8
2,084.6
2,228.5
2,233.0
2,325.1
2,387.6
2,448.5
2,497.7
2,591.4
2,659.2
2,728.4
38/63
545/1373
Annual Change
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Sector Rank
Economy Rank
Industry
EstablishRevenue Value Added
ments
(%)
(%)
(%)
1.8
12.0
3.0
3.7
15.5
-3.0
0.7
-11.0
-2.7
2.3
7.4
-0.9
3.5
6.6
-1.0
6.6
12.7
2.8
3.0
1.9
-0.6
2.0
1.5
0.4
3.2
8.1
2.3
3.1
2.9
2.1
2.3
2.3
0.7
4.0
4.1
2.5
3.1
3.0
2.1
3.0
3.0
2.1
13/63
5/63
11/63
542/1373
158/1373
463/1373
Key Ratios
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Sector Rank
Economy Rank
IVA/Revenue
(%)
17.97
19.77
22.03
19.48
20.44
21.05
22.24
22.00
21.89
22.93
22.90
22.90
22.90
22.88
22.87
11/63
958/1373
Imports/
Demand
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Exports/
Revenue
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Revenue per
Employee
($000)
133.05
124.86
132.94
130.57
138.01
141.02
146.49
147.34
148.48
147.28
146.89
145.01
146.79
146.65
148.98
44/63
970/1373
Wages/Revenue
(%)
13.88
14.09
14.18
14.04
13.90
13.76
13.79
13.41
13.69
13.63
13.56
13.52
13.48
13.42
13.36
20/63
897/1373
Imports
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Wages
(%)
3.3
4.3
-0.3
1.3
2.4
6.9
0.2
4.1
2.7
2.6
2.0
3.8
2.6
2.6
13/63
536/1373
Employees
per Est.
5.91
6.22
6.25
6.58
6.43
6.57
6.56
6.76
6.82
6.93
7.02
7.23
7.25
7.33
7.28
19/63
888/1373
Domestic
Demand
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Number of pets
- cats and dogs
(Mils)
154.0
163.0
165.0
171.0
164.6
168.7
173.1
177.3
181.3
185.1
188.6
192.1
195.8
199.5
203.3
N/A
N/A
Average Wage
($)
18,470.88
17,593.49
18,847.28
18,326.57
19,177.59
19,399.93
20,205.09
19,764.21
20,332.12
20,073.14
19,918.16
19,603.03
19,790.14
19,674.46
19,902.40
39/63
1209/1373
Share of the
Economy
(%)
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
35/63
556/1373
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Industry Jargon
IBISWorld Glossary
WWW.IBISWORLD.COM
IBISWorld Glossary
continued
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