Packaged Facts: PetSmart and Petco Account For 20% of U.S. Pet Product Sales

Retail duo aided by strength of natural pet product segment

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Feb 11, 2015, 08:08 ET

ROCKVILLE, Md., Feb. 11, 2015 /PRNewswire/ -- America's two most recognizable pet retailers, PetSmart and Petco, account for $20% of all pet product sales in the U.S., according to market research publisher Packaged Facts. The two pet retail mainstays had combined sales of about $11 billion based on Packaged Facts' estimates, with sales of natural pet products an important factor in the strong performances.

The findings were published in the Packaged Facts report, Pet Food in the U.S., 11th Edition, which can be obtained by visiting: http://www.packagedfacts.com/Pet-Food-11th-8384332/.

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"Although PetSmart is public and Petco privately held, the two companies share a number of similarities. This ranges from their pet parent pitch, to their focus on national brands and private labels alike, to their emphasis on higher-margin products and services, to their leading e-commerce websites," says David Sprinkle, Packaged Facts research director. "For both chains, factoring strongly among those higher-margin products are natural products."

Aside from superior customer service and a knowledgeable staff, an important differentiator for pet specialty retailers to separate them from lower-priced mass retailers is their focus on natural products, and an increase in all-natural private label brands. In Packaged Facts' April/May 2014 Pet Owner Survey, 39% of pet owners agreed that the natural products sold in the pet specialty channel are better than those sold at mass (up from 28% in a February/March 2013 survey).

For PetSmart and Petco, natural products are a major thrust, with Petco fielding its "store-within-store" It's All Natural departments, and PetSmart—which in December 2014 agreed to be acquired for more than $8 billion by a group led by BC Partners Inc.—calling itself "the most trusted source for natural pet solutions." Both chains feature a wide array of natural brands, with category leaders including Nutro, Blue Buffalo, WellPet, Natural Balance, Merrick and Natura.

Pet Food in the U.S., 11th Edition draws on decades of experience in analyzing the pet food industry, in addition to utilizing Packaged Facts' broad cross-category expertise to pinpoint strategic directions for current and prospective marketers, with a forward-looking focus on market drivers and high-growth segments. The report devotes separate chapters to Dog Food, Cat Food, and Other Pet Food (birds, small animal, fish, and reptiles), while also providing a comprehensive Market Overview covering cross-market trends and opportunities. For more information on this and other reports in Packaged Facts' industry-leading pet market research catalog, please visit: http://www.packagedfacts.com/.

About Packaged Facts – Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, consumer financial products and services, consumer goods and retailing, consumer packaged goods, and pet products and services. Packaged Facts also offers a full range of custom research services.

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SOURCE Packaged Facts