PetSmart Considers In-Home Services
Inc.is probing an expansion into in-home services, including dog walking,
backyard clean-up and aquarium set-up, in an effort to help differentiate
itself from mass retailers such as Wal-Mart Stores Inc.
currently offers grooming, training and kenneling at many of its 1,137
services are a big opportunity, but we have a lot of work to do before
we determine how to make that work,” Robert Moran, who became the pet
retailer’s chief executive officer last month, recently told Bloomberg
becomes a competitive advantage if we can break the code on how to
challenge for PetSmart is how to deliver profitable, quality services,
he said. Mr. Moran, chief operating officer since 2001, also plans
to increase store-brand sales to as much as 30 percent of sales in
the next five years from 17 percent currently, as well as further increase
its emphasis in hard goods, which are about twice as profitable as
food and another differentiator.
moves come as Wal-Mart has been making a big push into the pet category.
Besides upgrading the quality of pet products, Wal-Mart is repositioning
pet food and supplies right in front of its other fast-growing business,
such as baby products. David Strasser, an analyst at Janney Montgomery
Scott, said Wal-Mart competes in about 20 percent of the items carried
are concerned, as most of the overlap is in food and consumables, which
is a traffic-driving category for PetSmart,” Mr. Strasser said.
any move by PetSmart into at-home services would put pressure on the
many mom & pops currently supplying those services.
Tuesday, owner of No Furry Worries in Huntington Beach, Calif., told
County Register that
customers may trust these services from an established firm. In particular,
they’d likely have better procedures in place in case something goes
wrong than some entrepreneurs. But she said the work isn’t easy.
would really question the training of the people they would hire,” Ms.
Tuesday said. “You can’t just hire a bunch of kids and then expect
people to let them into their homes.”
Questions: What do you think of PetSmart’s potential move into at-home
pet services? What are the challenges in such as move? Will it help
differentiate the chain from retailers like Wal-Mart?
- PetSmart Considers
Backyard Clean-Up, Dog Walking – Bloomberg News
- Poll: Would
you pay PetSmart to walk your dog? – Orange County
recession-time pet project – CNN Money