Petsmart Company Study
COMPANY RESEARCH PAPER
PETSMART
PetSmart, Inc. is the largest specialty retailer of services and solutions for the lifetime needs of pets. The company operates more than 1,107 pet stores in the United States and Canada and 132 in-store “Pet Hotels”, which are combination cat and dog boarding facilities. PetSmart is also a leading online provider of pet supplies and pet care information. PetSmart provides a broad range of competitively priced pet food and pet supplies. The company also offers complete pet training, pet grooming, and pet adoption services. PetSmart leases all of its superstores, its corporate offices, and its distribution centers. The terms of the superstore leases generally range from ten to twenty years and typically allow the company to renew for three to five additional five year terms. Superstore leases, excluding renewal options, expire at various dates through 2015 (PetSmart Annual Report). Among pet supply retailers, PetSmart Inc. continues to gain traction at the expense of rival PETCO. The average PetSmart customer shopped at the store 1.44 times in November, compared to only 1.28 in November 2007, an increase of more than 12%. By comparison, PETCO has suffered a 1% drop from 1.26 visits per customer in November 2007 to 1.25 visits per customer this year. Both pet supply businesses have seen customers' spend per visit decline by approximately 2% since November 2007. PetSmart has seen a 10% increase in average customer spending per month from $49.55 to $54.43, while PETCO has seen a 3% decrease from $45.21 to $43.89 (PetSmart Annual Financial Information). PetSmart, Inc. boasts their major source of revenue as being the largest specialty pet retailer of services and solutions for the lifetime needs of pets. PetSmart provides a broad range of competitively priced pet food and pet products and offers complete pet training, pet grooming, pet boarding, doggie day camp, and pet adoption services. Since 1994, PetSmart
PETSMART
PetSmart, Inc. is the largest specialty retailer of services and solutions for the lifetime needs of pets. The company operates more than 1,107 pet stores in the United States and Canada and 132 in-store “Pet Hotels”, which are combination cat and dog boarding facilities. PetSmart is also a leading online provider of pet supplies and pet care information. PetSmart provides a broad range of competitively priced pet food and pet supplies. The company also offers complete pet training, pet grooming, and pet adoption services. PetSmart leases all of its superstores, its corporate offices, and its distribution centers. The terms of the superstore leases generally range from ten to twenty years and typically allow the company to renew for three to five additional five year terms. Superstore leases, excluding renewal options, expire at various dates through 2015 (PetSmart Annual Report). Among pet supply retailers, PetSmart Inc. continues to gain traction at the expense of rival PETCO. The average PetSmart customer shopped at the store 1.44 times in November, compared to only 1.28 in November 2007, an increase of more than 12%. By comparison, PETCO has suffered a 1% drop from 1.26 visits per customer in November 2007 to 1.25 visits per customer this year. Both pet supply businesses have seen customers' spend per visit decline by approximately 2% since November 2007. PetSmart has seen a 10% increase in average customer spending per month from $49.55 to $54.43, while PETCO has seen a 3% decrease from $45.21 to $43.89 (PetSmart Annual Financial Information). PetSmart, Inc. boasts their major source of revenue as being the largest specialty pet retailer of services and solutions for the lifetime needs of pets. PetSmart provides a broad range of competitively priced pet food and pet products and offers complete pet training, pet grooming, pet boarding, doggie day camp, and pet adoption services. Since 1994, PetSmart