Pets at Home is to repay in full the £28.9m of business rates relief received during the covid-19 pandemic.
The group says the decision reflects its ‘guiding principle of treating all stakeholders fairly’ and is supported by the continuing strong performance of the business.
Peter Pritchard, group CEO, said yesterday: “I continue to be immensely proud of the tireless efforts of my colleagues across the business and the work they are doing to meet the needs of our nation’s pets week after week in the pandemic.
“We were very grateful for the rates relief provided back in March during a time of significant uncertainty, which helped us to take the decision to keep our stores, online operations and veterinary practices open. Recent positive news around the launch of vaccinations for covid-19 has led us to reassess the level of uncertainty ahead.
ROBUST BUSINESS
“Pets at Home is a robust business, both operationally and financially, with amazing colleagues, great operations, good liquidity and a strong balance sheet. Our decision today demonstrates our clear commitment to acting responsibly and treating all of our stakeholders fairly.”
The aggregate result of covid-specific costs and restrictions means that the financial impact of the pandemic on Pets at Home this year – currently estimated at more than £35m – will no longer be offset by the rates relief received.
In a statement yesterday, the group said: “Nevertheless, 10 months into this unprecedented and challenging environment, our adaptability and recent sustained performance across the business means that we are now, more than ever, confident in the strength and longevity of our pet care platform and proud to be repaying the business rates relief in full from this position of strength.”
Pets at Home’s decision to return the rates relief follows similar moves by the UK’s biggest supermarkets including Tesco, Sainsbury’s, Aldi and Asda, which have pledged to pay back more than £1.8bn, citing strong sales during the pandemic.
Some retailers, whose sales have boomed during the crisis, have been criticised for taking government help while paying dividends to shareholders.
SAFETY MEASURES
Pets at Home’s sales between April and October rose by 5.1% to £574.4m while pre-tax profit grew by more than 14% to £38.9m.
The group CEO said at the time that pet ownership had surged during covid as people spent more time at home and devoted extra time to their dogs and cats.
According to a BBC report today, Pets at Home said in November that it had lost £17m from implementing new safety measures across its grooming salons and restricting its veterinary services to emergency treatments only.
The retailer will also be shutting its stores on Boxing Day, costing an estimated £3m in sales, to give its staff ‘a rest’.
Pets at Home has not placed any employees on furlough, the BBC reports, and expects full-year profits to be in line with last year’s underlying figures of £93m.
