The Survey Says ...

By Sherri Collins

Editor, Pet Product News International

As many of you may well be aware, this past February we sent out questionnaires for our annual State of the Industry report.  Between February 9 and March 24, nearly 400 independent pet retailers (from a survey sample of 2000 representing 6100) dutifully filled out the extensive forms, bringing the survey’s response rate to just over 20 percent—statistically, a very acceptable number. The survey conductor, Readex Research, compiled the data, tabulated the numbers and presented the results to the magazine this past week.

What do the report’s results indicate? That despite our nation’s ongoing financial turmoil, people will do what it takes to take good care of their pets. The survey gives support to the recession-resistant nature of the industry. Despite the economic climate of this year and last, 42 percent of your fellow retailers reported an increase in sales from 2007 to 2008 and 19 percent reported sales were the same from year to year. Unfortunately, 28 percent saw sales decrease. However, nearly 13 percent of you were doing well enough to open up a new store and another 6 percent relocated for more square footage. Welcome information, indeed, in these troubling times.

More than 40 percent of our industry’s merchants experienced sales volume increases in 2008 compared to 2007, while 19 percent reported level sales from year to year. Overall, the majority held their own this past year. In addition, nearly half (47 percent) anticipated doing better in 2009.

What was selling the most? Dog products (as if you had to ask). The dog marketplace accounted for the greatest portion of store sales, bringing in an average $183,000 or 55.25 percent of store sales volume—a noticeable increase over 2007’s reported average of $144,000 per store.

Aquarium fish and related products captured 13.25 percent of the pet-product market, with those of you who sell fish and/or fish products reporting an average intake of $43,900 for the year. Cat-related sales were consistent dollar-wise from 2007 to 2008, with the average retailer bringing in $34,700 for the feline category, which garnered 10.48 percent of the total market.

Anyone who’s worried that the pet marketplace will soon be “all dogs all the time” should take in heart knowing that four categories—bird, herp, small mammal and pond— brought in more dollars in 2008 than in 2007 for the typical storekeeper. The biggest gain was in small mammal, which, on average, earned retailers 42-percent more, jumping from $10,700 in 2007 to $15,300 in 2008.
 
Holistic and natural products also remained hot. Your customers purchased holistic and natural products in even greater numbers in 2008, with 44 percent of you reporting an increase in holistic/natural-related sales.

You’ll find more State of the Industry report results in our annual 2010 Pet Industry Directory & Buying Guide, which is polybagged with the upcoming June 2009 issue. Look for it soon in your mailbox.

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