Yahoo Finance Pets at Home hits £1bn sales record as lockdowns spur ‘pet baby boom’
Pets at Home achieved sales of more than £1bn for the first time as the number of people in the UK with pets rose during lockdowns.
The retailer and vet chain estimated that pet numbers increased by 8% during a year in which many people were stuck at home. The boom has led to pet food shortages.
The pandemic “structurally altered the dynamics of the UK pet care market”, the company said, with increased home working removing a barrier to pet ownership and increasing the emotional attachment to – and willingness to spend on – animals.
Pets at Home revenues grew by 7.9% to £1.1bn in the year to 25 March, which coincided almost exactly with the start of the UK’s lockdowns. That was a record in the company’s 30-year history.
It said there had been a pet “baby boom”. Sales of kitten and puppy products surged by 37% and 26% respectively, with training products and heated puppy beds in particular demand. Even less cuddly fish tank sales increased.
Profits rose to £116m despite £30m of Covid-19-related costs, although underlying profits were flat once the £30m sale of five pet hospitals were taken into account.
Pets at Home said it expected the changes to last, adding that it could boost sales by a further £600m owing to increased ownership as well as people spending more on their animals.
This includes what it called the “humanisation” of pampered pets by owners who were willing to spend more. Pets at Home cited the growth of more expensive food and luxury items, such as paddling pools for dogs and pet fashion, with sales of dog coats up by 24%.
Peter Pritchard, Pets at Home’s chief executive, said: “We ended this unprecedented year a far stronger pet care business. Despite challenges to how we were able to do business, we grew our market share across all channels and our underlying growth trajectory accelerated. Covid-19 has structurally changed the dynamics of the pet care market.”
He added that the company would continue to spend on infrastructure, digitising the business and using its data on customers to target further growth.
