WPA Report Offers Pet Retailers Insight for Business Growth Strategies
Services like grooming and boarding were strong revenue performers for pet retail companies in 2016, according to the World Pet Association’s (WPA) 2017 Retail Operating Performance Report, which is available for purchase by pet retailers and service providers.
The 2017 Retail Operating Performance Report was commissioned by WPA in collaboration with Pet Store Pro. The study surveyed 118 pet retail companies, representing more than 250 retail locations and including retail stores with animals, dry goods only and grooming.
Survey respondents reported income from grooming accounts for 46.4 percent of revenue for the average grooming store, with a nearly comparable percentage of income (43.7 percent) coming from net sales of merchandise and boarding services.
In addition, the 2017 report found that respondents had typical sales volume of $863,704 and a median ticket of $34.94 per transaction. Respondents also reported net profit before taxes of 7 percent, up from 5 percent in 2016. The average sales growth for respondents was 5.3 percent in 2016, and they forecasted growth of 5.8 percent in 2017. Pet retail respondents reported total revenues per selling square foot of $226 and operating margins per square foot of $124.
With brick-and-mortar retailers facing more competition from online competitors, respondents reported plans to initiate online sales in the next two years (43.6 percent).
The report format provides easy-to-understand guidelines and benchmarks to help pet professionals evaluate financial and operating performance compared to a cross-section of the industry and includes a compilation on and analysis of sales and operations data, as well as additional profile information, according to WPA officials.
The strategic analysis is designed to help pet retailers monitor and manage expenses, measure and improve productivity, evaluate employee effectiveness and improve their company’s bottom line. Key areas evaluated include: overall performance, management ratios, cash cycle, liquidity measures, employee productivity ratios, sales performance and space productivity ratios.
“As stewards of the industry, it’s important for WPA to provide pet retailers with resources they need to drive business growth strategies,” said Jacinthe Moreau, president of WPA. “The 2017 Retail Operating Performance Report is the best, most up-to-date, comprehensive indicator of the current health of the industry. Retailers will truly benefit from the analysis that compares store types, allowing them to identify their strengths and weaknesses against similar stores so they can make informed business decisions.
The 2017 WPA Retail Operating Performance Report was compiled, tabulated and analyzed by Industry Insights, Inc., an independent professional research and consulting firm that specializes in customized research.