Pets at Home expects full-year underlying pre-tax profit to exceed current market expectations, after revealing “double-digit LFL growth” through the eight weeks to 10 September 2020 across its Retail and Veterinary operations.
Jonathan Rock, Associate Retail Analyst at GlobalData, a leading data and analytics company, offers his view on this news:
“Whilst naturally more resilient to the pandemic’s effects due to its location in out of town retail parks and operating in an inherently resilient pet market, Pets at Home’s strategy has also proved effective. Continued investment in its omnichannel capacity and expanding its pet care services capabilities has set the retailer apart from the competition and helped offset lower in-store footfall.
“With increased COVID countermeasures announced, consumers will continue to spend more time with, and more money on, their pets. Those reluctant to purchase a pet during the initial lockdown may do so now going into another similar period of COVID countermeasures. Emphasis on its pet care services seems an especially wise move as consumers are more likely to cut non-essential pet spending, such as toys or treats, compared to more essential pet care services, such as vet trips or grooming. Alongside the retailer’s online growth and established brand, this will help maintain its strong growth.”