Vets And Grooming Drive Revenue At Pets At Home

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Vets and grooming drive revenue at Pets at Home
8th August 2017

By Sandra Pearce

Pets at Home says its first-quarter revenue grew 5% to £256.5m due to strong demand for its veterinary and pet grooming services.

The 439-chain said services’ revenue grew 18.8% to £40.1m, with vet practice income delivering 19.7% to £16.2m for the 16 weeks to July 20.

Merchandise revenue grew 2.8% to £216.4m

In its Trading Statement, it said: “Everyday lower price repositioning continues with the addition of another major dog food brand, James Wellbeloved. This follows the positive customer response to price changes earlier in the year across veterinary diets, private label dog Advanced Nutrition, pet essentials and Hill’s Science Plan.”

CEO Ian Kellett said: “We are pleased with our positive start to the year, delivered through another period of strong growth in our vet group and further momentum in merchandise trading.

“We have continued our everyday lower price repositioning and reduced the reliance on short-term promotional discounts. We remain encouraged by the overall response to our pricing changes and by the number of both new customers and those we have welcomed back.

“We have also strengthened our omnichannel capabilities substantially, with subscription services, Order-In-Store and Click & Collect performing particularly well. This underlines the importance of our store environment where customers benefit from products, services and colleague advice.

“Whilst it is still early in the year, the financial outlook is in line with our expectations. We are confident the investments we are making to grow our veterinary business and to reposition our pricing and deliver everyday value for our customers are creating a strong platform for sustainable future growth.”

Pets at Home aims to open 10 superstores, 40-50 vet practices and 40-50 grooming salons this year.

Ben Flint, a market analyst at www.cityindex.co.uk, told pbwnews: “Investors may well lap up another rise in revenue at Pets at Home. But it will likely take more signs of improvement to really get their tails wagging.
 
“Adjustments to its price offering and more investment in the higher-margin home label appear to have paid off, with like-for-like sales in the under-pressure merchandise division up 1.5%. That's hardly blistering growth, but represents a continued improvement from the slump recorded in the company's fiscal third quarter.”