PetSmart Considering New Business Model
PetSmart Inc., the largest U.S. pet- store chain, is considering expansion into in-home services including dog walking, backyard clean-up and aquarium set-up to distinguish itself from retailers such as Wal-Mart Stores Inc. PetSmart currently offers grooming, training and kenneling at many of its 1,137 stores, he said. “In-home services are a big opportunity, but we have a lot of work to do before we determine how to make that work,” Moran said in a July 15 telephone interview. “It becomes a competitive advantage if we can break the code on how to provide that.” Wal-Mart is targeting the $45.4 billion market for pet goods, putting pressure on PetSmart as shoppers consolidate buying trips, according to David Strasser, an analyst with Janney Montgomery Scott LLC. Wal-Mart competes in about 20 percent of the items carried by PetSmart, he said in a report last month.
Interesting. But, I don't think they can make this strategy profitable. The article indicates, indirectly, that PetSmart is having trouble going head-to-head with Wal-Mart because consumers are increasingly cost conscious because of commuting costs. These things, like dog walking and backyard cleanup are low margin businesses. I have other ideas, but hey, no one is asking (or paying) for my advice.
PetSmart Inc., the largest U.S. pet- store chain, is considering expansion into in-home services including dog walking, backyard clean-up and aquarium set-up to distinguish itself from retailers such as Wal-Mart Stores Inc. PetSmart currently offers grooming, training and kenneling at many of its 1,137 stores, he said. “In-home services are a big opportunity, but we have a lot of work to do before we determine how to make that work,” Moran said in a July 15 telephone interview. “It becomes a competitive advantage if we can break the code on how to provide that.” Wal-Mart is targeting the $45.4 billion market for pet goods, putting pressure on PetSmart as shoppers consolidate buying trips, according to David Strasser, an analyst with Janney Montgomery Scott LLC. Wal-Mart competes in about 20 percent of the items carried by PetSmart, he said in a report last month.
Interesting. But, I don't think they can make this strategy profitable. The article indicates, indirectly, that PetSmart is having trouble going head-to-head with Wal-Mart because consumers are increasingly cost conscious because of commuting costs. These things, like dog walking and backyard cleanup are low margin businesses. I have other ideas, but hey, no one is asking (or paying) for my advice.
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