Marcus Leroux
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They say never work with children or animals. But its seems that when it comes to a recession, it can be a positive advantage.
Just as parents have proved unwilling to cut spending that would disadvantage their children, consumers are spending more on pandering their pets even as they tighten their belts elsewhere. Pets at Home, Britain’s biggest pet products chain, will confirm today that downturns are good news for animals, if not their owners.
The company, which sells equipment, pet food and small animals at its 232 stores in out of town locations, said that trade had improved because families were spending more time at home - and therefore more time with their pets.
Sales in the year to March 26 rose 7.5 per cent, excluding new stores, while pre-tax profit surged 29 per cent to £40 million. Turnover rose 14 per cent to £404 million as the private equity-owned retailer opened 19 new stores in the year.
A spokesman said: “We are seeing evidence that families are spending more time with their pets, as they cut back on other activities. So they are buying more toys to play with in the garden or park - toys that allow the owner and pet to play together, rather than just the pet on its own.
“They are buying small, affordable treats for their pets and they are taking more interest in the health of their pets, so are trading up to higher quality foods.”
Sales of fashion lines, such as dog clothing, have also risen as owners, faced with spending more time with their animals, try to spruce up their image, the company said.
Matthew Davies, chief executive of Pets at Home, said: “Despite unprecedented economic headwinds, we worked hard to delight our customers with the quality, innovation and value for money of our products.”
The group hopes to open another 20 stores this year. Typically, its shops are in retail parks.
Pets at Home also runs an in-store veterinary practice, where like-for-like revenue grew by 7 per cent. Its strong performane will please Bridgepoint, its owner.
The private equity company also owns Fat Face, the fashion chain, and Pret A Manger, the sandwich shop. It was reported earlier this year that Bridgepoint had to inject fresh capital into Fat Face.
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