Pet Parents Grow the Market

Written by John Stanley

I recently hadrepparttar opportunity to look atrepparttar 150167 pet retail industry inrepparttar 150168 USA.

The industry is growing by 6% a year and, like many other retail sectors, is going through some major changes.

In many retail leisure sectors,repparttar 150169 industry is splitting into commodity retailing and lifestyle retailing.

65% of pet products inrepparttar 150170 USA are still purchased as commodity products via supermarkets and mass merchandisers, butrepparttar 150171 growth sector are specific pet “box” store retailers who are introducing lifestyle retailing.

Petco has 5.4% ofrepparttar 150172 U.S. market and are introducing 12,000 to 15,000 square foot pet stores acrossrepparttar 150173 USA.

Their rival Petsmart had 612 stores and 9.6% market share. Their stores are 19,000 to 26,000 square foot and include Veterinary Surgeons and a trial onrepparttar 150174 Pet Hotel. I am sure these two companies will be fighting it out forrepparttar 150175 pet supermarket dominance overrepparttar 150176 next few years.

The traditional corner pet store seems to berepparttar 150177 sector that is losing market share and is down to 7.7% ofrepparttar 150178 market and I would not be surprised to see that shrink further whilerepparttar 150179 overall market expands.

Who is growingrepparttar 150180 market and spendingrepparttar 150181 dollars? Pet Parents. These are singles, generation X and baby boomers using pets as child substitutes.

To attract this time poor but cash rich market sector, you need to provide an experience.

Distributors and retailers both need to be aware of how to buildrepparttar 150182 experience economy as it relates torepparttar 150183 pet industry.

Providing an Experience Customers are bored with seeing products on retail shelves, they are looking for more exciting experiences. The challenge is, are you inrepparttar 150184 commodity business, selling products or are you providing an experience. Commodity sellers place tangible items on shelves and benches and sell units of product. The challenge is always to increaserepparttar 150185 average sale per customer, one way of achieving this is to introduce service and services i.e. activities you execute. Many retailers have achieved this by providing delivery services, demonstrations, tasting stations and technical knowledge. Now isrepparttar 150186 time for retailers to move on and provide an experience. This means we should create an experience forrepparttar 150187 customer where they are fully engaged with what we are doing. Inrepparttar 150188 USA, Pike Place Fish Market is looked on asrepparttar 150189 ultimate experience in Seattle’s retail scene. In Australia,repparttar 150190 Beechworth Bakery in Victoria, many would argue, createsrepparttar 150191 same experience. Whilst in South Africa, Lifestyle Garden Centre is recognised as a global leader inrepparttar 150192 experience market. The guide to building an experience is explained inrepparttar 150193 book The Experience Economy, work is theatre and every business a stage by B.Joseph Pirie II and James H. Gilmore. Think of developing your business experience based on four key elements:

From Warehouse to Consumer - How can we cost effectively get pet products into the consumer’s hands?

Written by John Stanley

The most cost effective part of a product’s journey is fromrepparttar shelf torepparttar 150166 checkout, we rely onrepparttar 150167 consumer to carry out this handling process. The most expensive exercise is gettingrepparttar 150168 product torepparttar 150169 shelf.

Whatever branch of retailing you are in,repparttar 150170 area that is absorbing most energy is in supply chain management.

The supermarkets, who are also in pet products, leadrepparttar 150171 way. In Australia, Woolworths have saved $2 billion Australian dollars by reducing their distribution centres from 31 to 11 and have also ensured their inventory turnaround has gone from 16 days to 12 days. Tesco inrepparttar 150172 UK have reduced their inventory at store level to 5 days. These are real savings torepparttar 150173 retail industry.

Push it or pull it Traditionallyrepparttar 150174 industry has pushed products throughrepparttar 150175 industry. Suppliers have sold products to retailers, retailers have put them onrepparttar 150176 shelf withrepparttar 150177 hope that consumers would buy them.

The industry will change to a pull supply chain management system. This is whererepparttar 150178 chain initiation starts withrepparttar 150179 consumer who buys a products, this triggers a process whererepparttar 150180 retailer orders product fromrepparttar 150181 supplier based on a “just in time” process.

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