Commentary From Our Chairman / CEO
ARE YOU BARKING UP THE RIGHT TREE?
Michael D. Sleeper, Chief Executive Officer, Imperial Distributors, Inc.
Did you know that Americans spent over $55 billion in 2013 on their pets, and that 82.5 million American households, or 68%, own at least one pet? Pets now have us outnumbered. There are over 385 million pets in the U.S., compared to 300 million of us mere humans. Pets are most popular with empty nesters, single professionals, and couples who delay starting a family.
Spending on family pets has increased because of their elevated status in our homes and in our lives. More than 9 out of 10 pet owners say they consider their pets valued members of their family. One million dogs are in wills as the primary beneficiary, because there is a strong belief that pets have a positive impact on their owners’ physical and mental health. As a respected member of the family, pets should have the same amenities as their “siblings” especially when it comes to food, toys, nutrition, exercise, pampering and joining in on family vacations and entertainment. Would you believe that there is DOGTV, a cable channel with dog-friendly programs to keep pets occupied and happy?
Sales of pet food reached $22 billion in 2013, and over $6.5 billion a year was spent in supermarkets. The biggest challenge for supermarkets today is competing with the big box retailers like PETCO and PETSMART, and Mass Merchants – Wal-Mart and Target. Growing Internet and On Line stores are also gaining market share. Despite the increased competition, however, supermarkets have done an impressive job growing their share of this profitable and dynamic category.
Pet supplies/accessories are a growing category. They rank among the top 3 General Merchandise Categories in supermarkets ahead of batteries, foil ware, kitchen gadgets and stationery.
New items continue to add a lift to the pet supply department with focus today on natural, green and organic products, grain-free treats, training pants, and the ever-changing novelty toys for dogs and cats. With increased emphasis on nutrition and health and wellness, there’s also growth in pet remedies and supplements which go well beyond flea and tick items. Nearly 70% of pet owners say they do not hesitate to spend more money to ensure the happiness and wellness of their pet.
As pet products continue their steady 4% annual sales growth, and eventually rise to a projected $75 billion by 2017, it’s important for supermarkets to capitalize on sales opportunities. Displaying, merchandising, advertising, and promoting the pet category will create a “destination” within their stores to meet the consumer’s needs.
There is no question that the pet category is growing, and getting behind it, is barking up the right tree.
For comments or questions, contact us by phone at 508-756-5156, or e-mail: msleeper@imperialdistributors.com