The growing focus on digital access is creating an opportunity for specialty retailers to grow market share if they are developing an online trade.

 

While the trend is pointing towards customers happy to pay premium prices for more upmarket items and services for their pets, it is the reverse for the basics. Competition here is price led and the challenge for any operator is that pet food and supplies are increasingly purchased alongside groceries.  

 

Anyone in this sector needs to build brand recognition. So what will it take? Extensive stock levels, logistics plans, marketing budgets and user friendly websites.  The differentiation has to be on product quality, not price. 

 

This is predominantly big box retailing: Wesfarmers has a 9.4 percent market share including Coles and accessories through Bunnings, Target, KMart and Officeworks; Woolworths has an 8.5 percent market share. Other retailers include Petbarn, which is part of the Greencross pet care specialty retail group; the RSPCA superstore World for Pets; and the online delivery business Pet Circle. 

 

When it comes to franchised chains, there are several retail systems operating online: the family owned and operated Petstock business, which also has more than 100 bricks and mortar stores, and Pet Goods Direct, which is affiliated with Pets Paradise stores. There’s also a national buying group of locally owned independent pet stores across Australia, Just for Pets. Some businesses are honing in on the grooming and premium products trend, such as Dogue, a retail boutique and spa brand that has recently started franchising. 

 

Franchise brands have been involved in the petcare arena for some time on a more modest scale with mobile business models particularly popular. Dogwashing, dog walking and grooming are well recognised services.