by Nancy Hassel, American Pet Professionals

After speaking with multiple pet retail store owners recently, observing discussions online, and witnessing the closure of two pet retail stores within a 5-mile radius of my location over the past four months, it’s clear that pet retailers are facing significant challenges. One store closed due to a very large rent increase by their corporate landlord, while the other attributed its closure to the growing trend of online shopping.

 

We know retail sales can ebb and flow depending on the economy, customers’ spending habits, and competition in the area. But with the buzz of how powerful the pet industry always is – it is disheartening to see and hear from retail friends how slow they have been.

 

I am a brick-and-mortar retail shopper. I understand the convenience of shopping online, and if I have to do so, i.e. no one nearby has it in stock or carries the product, (yes, I am old school and call my local pet stores), and I buy direct from the company vs. an online retail giant. D2C.

 

Packages from online purchases rarely land at my doorstep. I love being able to go into a store, speak with the storeowner, see what products are new, and what I may have missed seeing at a trade show or distributor show. Or even better, a local pet product company that just landed in local stores. To see, touch, and feel, the products, to see if the quality is there, and that it is what it says it is in the description online or in an article I learned about it is important to me.  

 

Being a super picky dog mom, knowing what is going to work well for my dog, it’s hard to gauge viewing a product online. And who has time to then figure out how to ship it back if it is not what was expected? Or where to take it to ship it back? I often bring my dog with me for the shopping experience, where he gets some time out and loves going to retail stores. We purchase items in the store and then share the visit on his social media accounts, tagging the store, to help that local storeowner.

 

For example, my dog was having issues due to his arthritis, and I went The K9 Shop, in Bohemia, NY, one of their locations near me, and asked about supplements to help him. Their staff is so well trained that they showed me and told me about Wholistic Pet Organics Joint GLM. I was sold on the ingredients, (label reader here since the mid-90s), and tried it out. That was nearly two years ago, and I still go back to that shop to purchase it regularly. Can I get it online, sure, but I love to be able to shop locally and help keep that store in business.  And because I learned about the product in store, I sought out the owner of Wholistic Pet Organics at Global in 2023 and learned so much more about all of their products, the company history, and so forth.

 

I realize, a lot of people don’t have that mindset, or they just want it drone delivered to their driveways in 2 hours. I get it, you may not have a lot of time, sometimes it is cheaper to order online, or you can’t find it anywhere. I recently ordered a product for myself directly from a company, and the shipment has been lost in transit, now I have to wait another week for a new order to arrive. Has that happened to you? It’s happened to me more than a few times, which is frustrating when you are waiting for something to arrive and it does not. I know it is not the company’s fault and things happen in shipping, but super annoying when you’re waiting for something! Or worse, if you’re waiting for a much-needed item for your pet that you could have purchased in a local pet store, and now the shipment is lost.  And more than likely you then end up going to the store to get it after all. 

 

After speaking with a very seasoned retail storeowner with multiple locations, she told me that her rep mentioned 15 stores in their territory on the East Coast have closed within the last few months and more are planning on it. Which may  be a reflection of what is going on, and sad at the same time. Those stores are community hubs that are no longer there to help local pet parents.

 

I also spoke with pet retail expert and pet nutritionist Tazz Latifi who owned a pet retail store, The Petropolist in New York City for 17 years. Tazz who now works with many retail locations and I asked her, “Are the retailers you visit slow, what are they telling you?” She said, “Yes they are struggling and slower this year compared to last year. The stores doing well have a well-trained, motivated staff and/or in-store services, grooming/self-wash.”

 

Another larger mom-and-pop store, here on Long Island, NY, has been extremely slow this year. It is usually a bustling shop that serves many different types of pets including farm animals.

 

So what is going on? Is it that people are just shopping online? Not spending as much, finding cheaper alternatives for pet products, big box stores, (which are not always cheaper), discount stores, or worse, giving up their pets due to inflation? (Sadly, our shelters are very overcrowded across the country).

 

Even with inflation supposedly going down and some prices going down, it may not reflect that in pet products. I can tell you that a bag of treats I have always purchased for my dog, used to be 10.99, just a few years later it is now 17.99 for the same size bag. Thankfully ‘shrinkflation’ has not occurred for that product, but that is quite the increase in price in my opinion.

 

I asked, John Gibbons of Pet Business Professor, what his take was, and he said, “The biggest problem in the retail market is cumulative inflation. This is especially true for Indy pet stores as they have the highest retail. Consumers are most driven by value = quality + price so they have increased ‘value shopping’ and many have moved to online outlets and/or switched to private label brands.”

 

John’s updated May Peflation report states, “In May, the National CPI slowed slightly to 3.3% from 3.4%. Petflation had a similar pattern. The Monthly rate fell to 1.6% from 1.7% in April. This is the lowest rate since 1.5% in March 2021. Monthly Petflation is only 50% of the National CPI for a second consecutive month. That’s a big change from January when it was 52% higher. However, we must not forget that Petflation is cumulative. The monthly Petflation rate has slowed significantly but Pet Industry prices are still 26% higher than in 2019. This big lift is definitely affecting the buying behavior of Pet Parents – a reduction in purchase frequency, increased online shopping and a movement to Private Label Products are some of the most notable impacts.” 

 

That 26% higher since 2019 stands out as a potential reason, in addition to other contributing factors. Is the industry too saturated in certain areas with pet retail and big box stores all near each other and selling the same products?  Is it because the option for the pet parent to go to a non-pet store and find the same products much cheaper?

 

One store owner mentioned that she thinks people want to go and do things more, have experiences, go out to dinner, vacations, etc. This could be true if you pass by a bar or restaurant anywhere here, they are packed, events are packed, and people are vacationing more, in the post-Covid era. (Which is good for our local restaurants of course – but if all the downtowns are just restaurants and bars, how will they do in the future?) Or is it a combination of all of the above?

 

Speaking with Kim Loper of Harbor Pet with locations in Greenport and Montauk, NY she said, “It is hard to stay competitive with pricing these days as online retail stores are bigger competitors than ever before. As well as non-pet stores bringing in similar products that we sell.” Kim has recently expanded her services in Greenport to now offer, self-service dog wash stations and grooming in the building next door to her pet store.

 

So what can you do as a pet parent or retailer to hopefully turn the tides in the right direction?

 

If you’re a pet parent reading this, you can help by shopping at your local pet store! That is the easiest way to help boost your local economy, save a business from going out of business, help them pay their staff, keep people employed, etc.

 

• You can also share that you shopped there on social media, (especially if you have a pet on social media), tag the shop, and help create FOMO for others locally to you who want to shop there.

 

• Attend their local events, invite your pet parent friends to go with you, and make a day of it.

 

• Sign up for their royalty programs in-store, so that you will get rewarded for being a customer.

 

• Instead of learning about a product from a mom-and-pop storeowner and then saying, “I can get it cheaper online.” You are already in the store so why not purchase it there? You may have just taken the time to ask questions to the staff or storeowner, perhaps took a picture of the product and instead of keeping dollars in your own town – you went home and purchased online, and now have to wait to get your product.

 

• If you want to donate products to your local animal shelter, go to your local store and purchase them there to donate. Win-win in my opinion!

 

If you’re a pet retail storeowner and it has been slow for you, or you want to stay competitive, here are some ideas to get people into your store and create loyal customers:

 

Pet Retail Stores:

 

• Host regular pet events – bring new customers into your store. We just hosted a webinar on How to Host Successful Pet Events, you can get the replay here. Or you can grab our 200+ Pet Event Idea Guide and Checklist with 4 pages to keep you on track when planning, promoting, and hosting pet events.  Events bring in new customers, create buzz, FOMO, and can bring in new revenue, press about your store, etc.

 

• Train your staff well – motivate them to want to learn how to sell more.

 

• Create a rewards program, if you don’t already have one. And if you have one are you letting your customers know?  Getting them to sign up?  Collecting their email addresses so you can send them news about the rewards this week, happenings, and events going on in-house?  What can they only get by coming into the store, a deal that is so irresistible, only for a short time?

 

• What about a monthly membership program – if you have self-wash stations, this can help reoccurring revenue or grooming clients, doggie daycare, etc. What perks can you offer your customers with that monthly membership? For dog’s sake, my dog has a membership on his TikTok account – members subscribe to be part of his community. Just to get your wheels spinning with ideas of what you can offer.  American Pet Professionals is a membership-based organization for 15+ years now. 

 

• Keep a positive and proactive mindset about your business. You can be positive but should also put into action new ways to bring people into your store. Do you have the best customer service, and the most well-trained staff so that your customers are recommending you to their pet parent friends?  These can be minor adjustments in training employees and rewarding your staff to help your store stand out. 

 

• Figure out what is not working as well as it did in the past and what you can do to get back on track. What new services can you offer that won’t break the bank? That will draw in new revenue. Ask your customers what they would love to see in your store! Create a suggestion box on your checkout counter, website, and email outreach to them.

 

• Promote your business via social media, and the local press, (press releases – what is coming up or new at your store), and schedule these in advance so you don’t lose that consistency. If you have the budget, hire someone to help you with this.

 

• Cross-promote your business with another local business. This can be a pet-related business or not. Equally cross-promoting each other can help let their customers know about your pet store and vice versa.

 

• Where can you cut back in your store? What is losing money or just not bringing in the same ROI that it did a year ago? Are there products that no longer sell well and take up precious real estate in your store? What platforms do you pay for that you don’t use?

 

• Where can you motivate your staff to be more empowered to sell more? I spoke about the ‘Art of the Upsell’ at SuperZoo in 2019, to teach your staff how to sell comparable products, that solve a problem that your customer may have, don’t let them walk out without making a purchase, even if it is a small one. Of course not being a pushy car salesperson, but done with the intent to help your customer, and create a return customer because you were so helpful.

 

• Is your store, or are you known for a specific area in pet retail? Can you niche down on that and become the go-to place? For example, Meow Mini Mart in Jersey City Heights, New Jersey, is a purpose-driven cat-only pet boutique catering to cat parents, offering education for cat parents, and only sells cat products. What is your specialty? How does your business stand out?

I believe there are many ways to increase your revenue and keep your customers loyal to your business as outlined above. No one said it would be easy, but as an optimist, (and a realist at the same time), I know how strong our industry is and how pet parents want the best for their pets.  But as a society, the times we are going through can affect many businesses.  Please let us know what you are doing to help keep your doors open, employees employed, and how you are increasing your revenue, and we will add it to this article to help our pet industry collectively.