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Thread: Pet Stores and Supplies - another recession proof business?

  1. #1
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    Default Pet Stores and Supplies - another recession proof business?

    Even in a recession, some dogs do very well

    Commentary: Hard times demand a warm, fuzzy friend

    By Al Lewis

    Last Update: 11:38 AM ET Aug 29, 2012

    DENVER (MarketWatch) — A shopper removed a dog bed from the shelves of a PetSmart store in Phoenix. Out rolled a Shih Tzu puppy.

    It had no knees on its hind legs, and it hopped, pathetically, like a rabbit. Anyone’s best guess is that some heartless breeder, having bred a designer dog with a crippling birth defect, had abandoned the puppy inside the store.

    Had this fur ball been left on the streets, it might have become coyote fare. Had it been taken to a shelter, it could have been euthanized. But instead this hapless little Shih Tzu became one of the luckiest dogs in the world.

    The woman who found her was the wife of PetSmart Inc. (PETM) Chief Executive Bob Moran. They named her Tatum Shea for the intersection of the store where they found her, Tatum and Shea boulevards. For the past nine years, Tatum Shea has lived in the canine splendor an executive in charge of 1,250 giant pet stores can provide.

    Unlike some big-box retailers — like, er-hem, Best Buy Co. — PetSmart has seen its stock nearly triple since the 2008 financial crisis to about $71 a share.

    In its most recent financial report, for the second quarter of this year, earnings were up, revenue was up, and same-store sales — the key metric for any retailer — were up 7% despite lackluster U.S. consumer confidence.

    I wouldn’t have predicted such success. I’d read stories about the foreclosure crisis causing an increase in abandoned pets. But Moran said his company plans to keep adding 50 new stores a year for the next eight years.

    Despite difficult economic times, or maybe because of them, an increasing number of people have come to think of their pets as people.

    In an interview, Moran said he calls this trend the “humanization of pets.”

    “We have seen dogs go from the barnyard, to the backyard, to the back porch, to inside the house, to inside the bedroom, to under the sheets,” he said.

    And if dogs are going to be under our sheets, they should be as clean as we are. They should at least be free of fleas, ticks and mange, necessitating a whole range of products and services that never would occur to a barnyard dog. Might as well feed them organic food and vitamins, too.

    “During the recession, pet parents didn’t trade down,” Moran said. “If anything, there’s been a trading up.”

    Yes, Moran calls his customers “pet parents.” Many of them, in fact, carry pictures of their animals in their wallets and treat them like overprivileged children.


    “Maybe it’s related to society,” Moran said. “It’s harder to bond. We don’t have as much time. I don’t know.”

    At 61 years of age, Moran has spent decades in retailing, beginning as a trainee at Sears. During a stint at Toys “R” Us, he would sit in the parking lots and watch the faces of children light up as they ran for the doors. He now sits in the parking lot and watches pets run for the doors.

    “They know where they are going,” he said, “and they start jumping up and down.”

    Dogs are his biggest customers. Cats, second. As CEO, he recognizes his weaknesses and surrounds himself with cat experts.

    “Cats don’t like me,” he admitted. “I don’t know why. I go up to a cat, and all of sudden I’m being bitten.”

    His company faces catty competition from all the usual players — from Wal-Mart Stores Inc. (WMT) to Costco Corp. (COST) — and from a privately held chain with a similar name, Petco. But PetSmart hasn’t been sufficiently threatened by Amazon.com Inc. (AMZN) and other Internet retailers.

    Remember Pets.com and its iconic sock puppet from the dot-com era? The company blew through its cash only to learn that shipping 40-pound bags of dog food and kitty litter to individual customers was unprofitable. PetSmart manages to eke out a margin on these products, and when pet parents come into its stores for a bag or two, they find a big-box array of pet products as well as grooming, training and boarding services.

    PetSmart doesn’t sell dogs or cats but provides space in its stores for animal shelters to offer adoptions. Through its PetSmart Charities — also supported by customers and employees — it’s on track to give away $42 million to animal welfare causes this year, Moran said. The company also just celebrated its 5 millionth pet adoption.

    This is why, for better or worse, some people have come to think of PetSmart as a great place to abandon a pet. “It happens more than you want to know,” Moran said.

    It worked out well for Tatum Shea. For a six-pound dog with missing knees, she’s logged a lot of miles.

    “She travels the world because she’s pretty easy to put into the cabin of a plane,” Moran said.

  2. #2
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    I agree.
    The pet industry here is booming, especially pet care.

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    during the kampong days..the dogs were kept for security reason and dog's food are the remnant of what the master ate.

    if sg are really in deep recession, we shall see if SPCA pick up more deserted pet

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    Very competitive. Now all the small independent pet shops are replaced by Pet Lovers the big player.

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    Quote Originally Posted by zzz1
    during the kampong days..the dogs were kept for security reason and dog's food are the remnant of what the master ate.

    if sg are really in deep recession, we shall see if SPCA pick up more deserted pet
    dont think so.
    think it is the adults that are keeping pets, as replacement for children.

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    WOOF WOOF somebody called ME...


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    bro is he your idol? lol

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    I am one of those guilty of patronising Pet Lovers. But they contribute to charity causes. Like hold pet adoption drive etc so not too bad la.

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    Quote Originally Posted by carbuncle
    I am one of those guilty of patronising Pet Lovers. But they contribute to charity causes. Like hold pet adoption drive etc so not too bad la.
    I used to also.
    But too expensive, so now I get my supply online.

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    Quote Originally Posted by buttercarp
    I used to also.
    But too expensive, so now I get my supply online.
    care to share the site? I'm looking for some cheap pets stuff online

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    Quote Originally Posted by Chillyred888
    care to share the site? I'm looking for some cheap pets stuff online
    You google search under pet food and you will get a list of online stores available and you can compare their prices.
    Their prices vary from time to time and different stores have different prices for different animals.
    My pets are rodents - guinea pigs and hamsters.
    What about yours?

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    My experience with one pet shop name includes a fruit name, bought a pack of kibbles realised got holes in the bag and when open got maggots among the food. Lucky they willing to replace FOC.

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    Quote Originally Posted by buttercarp
    My pets are rodents - guinea pigs and hamsters.
    What about yours?
    I'm looking for pet's accessories,eg. clothings,snacks,even cute bowls for my friend's doggie and cats.

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    Quote Originally Posted by carbuncle
    bro is he your idol? lol
    he is GOOD bro...if you got dogs u will know what i mean...

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    Quote Originally Posted by radha08
    he is GOOD bro...if you got dogs u will know what i mean...
    but since u single maybe you more interested in BITCHES.....the human kind..

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    Quote Originally Posted by radha08
    but since u single maybe you more interested in BITCHES.....the human kind..
    Carbuncle would probably prefer male ones.

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    Quote Originally Posted by buttercarp
    Carbuncle would probably prefer male ones.
    The OnlY Gay In ThE VilaGGe...

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    Quote Originally Posted by Chillyred888
    I'm looking for pet's accessories,eg. clothings,snacks,even cute bowls for my friend's doggie and cats.
    There are many to choose from.
    Just google search pet accessories.
    Or you can get it on ebay too.

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    what.....?

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    oh Cesar... I don't mind getting tamed by him. wink

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    Quote Originally Posted by carbuncle
    oh Cesar... I don't mind getting tamed by him. wink
    now i getting..SCARED...

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    as what i'm aware the only recession-proof business is "the world's oldest profession".

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    I no longer buy from Pet lovers. So expensive. I usually buy online from this online shop called Kohe Pets. Quite competitive.

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    bro Falcon. will check it out next top up....

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    Quote Originally Posted by iwantgizmos
    as what i'm aware the only recession-proof business is "the world's oldest profession".
    http://www.askmelah.com/red-light-district/


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