Pets at Home sales surge as animal ownership soars
Pets at Home has reported an 18 per cent leap in revenue to £302m for the third quarter of 2020.
The UK’s leading pet care firm showed a strong performance despite coronavirus lockdowns effecting store openings on both a regional and national level.
Trading built momentum over the festive period, with like-for-like sales seeing a 17.6 per cent rise as customers took advantage of its click and collect service.
The group anticipates full-year pre-tax profit of at least £77m, with a current share price of 403.2.
Peter Pritchard, Pets at Home CEO, said: “I am very pleased with the progress we have made in this quarter, in particular how we have adapted to the changing environment in which we operate.
“We remain as determined as ever to create the best pet care platform in the world, and our strong liquidity gives us the capacity to make the right investments to support our ambition”.
London saw the sharpest rise in dog ownership across the country in 2020, an 84 per cent leap according to research conducted by Quotezone.co.uk.
Pets at Home continued to grow its VIP and Puppy and Kitten Clubs, with increased spend across its pet care platform.
The number of VIP members increased 12 per cent year-on-year, over a quarter of whom shopped across more than one channel during the festive period.
Meanwhile, its Puppy and Kitten Club members grew by almost 50 per cent, typically spending a further 25 per cent more than non-members.
New clients across Pets at Home’s veterinary practices averaged 10,000 per week over the second half of the year, while subscriptions rose to over 1 million.
Its ongoing investment saw pet care made as convenient and flexible as possible, through the launch of click and collect and car delivery services across hundreds of destinations.
Smaller NextGen stores were opened in Camden and Putney, with a wider rollout possible depending on their performances.
The company also provided £200,000 in support to rescue centres through its Support Adoption for Pets foundation, taking its total donation to £1.3m since the onset of the pandemic.
Ross Hindle, retail sector analyst at Third Bridge, said: “Pets at Home is continuing to benefit from a rise in pet ownership during the pandemic and a growing trend of pet food premiumisation.
“Growth in high margin pet food has flowed through into pet accessories, as consumers look to humanize and spoil their new 4-legged friends.”