In a recently conducted survey by Pets+, insights reveal current and anticipated sales trends within the pet industry for 2024. A particular focus has been placed on grooming salons, which showed significant optimism with 64% expecting to see sales growth next year. Notably, approximately 25% of these businesses believe they will achieve an increase of 20% or more. Conversely, boarding and day-care facilities predict the least growth, with merely 30% looking forward to sales gains.
Candace D’Agnolo of Pet Boss Nation provided guidance for businesses aiming to enhance their revenue before transitioning into 2025. She suggested, “Consider encouraging customers to buy gift cards or packages at current rates before you raise them in 2025.” D’Agnolo further stressed the necessity of evaluating marketing strategies by questioning their effectiveness and the ability to win back lost customers, stating, “Now is not the time to hide. Be confident and start digital conversations with your customers daily!”
Respondents were asked about their total sales for the year 2023, revealing a varied financial landscape. Among the businesses surveyed, 22% reported total sales of less than $250,000, while 21% fell within the $250,000-$500,000 range. The distribution continued with 25% reporting sales between $500,000 and $1 million, 26% within the $1 million to $3 million bracket, and 6% exceeding $3 million.
A breakdown of product sales by department indicated that dog products dominated the market at 58%, with cat products contributing a smaller 14%. Other categories, including birds, small animals, reptiles, and aquatics, represented 5%, 3%, 3%, and 4%, respectively. The survey also identified the cat food category as experiencing the most substantial sales growth over the previous year, particularly with Thrivers reporting 19% growth in frozen raw cat food compared to just 10% among Strugglers.
The challenges in managing "bad profits," which refer to products that yield low margins relative to the effort required, were discussed by various business owners. For instance, one respondent noted that kibble does not generate significant profit but is retained due to its necessity in boosting overall sales. Grooming services were commonly mentioned as another area of concern, described as profitable yet disruptive to operations. D’Agnolo suggested, “Know your worth. Could you raise prices on self-wash and grooming by $5-$20?”
The analysis also highlighted the performance metrics of sales transactions, stating that 42% of Thrivers achieved an average sale per transaction above $60, contrasting with 34% of Strugglers who fell below this mark. Only 3% of Strugglers identified profit margin as an area needing improvement, unlike the 14% of Thrivers who recognised this as a critical aspect.
D’Agnolo encouraged regular financial monitoring, stressing the importance of stepping back from daily stresses related to bank account fluctuations. She recommended weekly reviews of finances coupled with monthly evaluations of profit and loss reports for comprehensive oversight.
In terms of e-commerce growth, an intriguing outcome surfaced from the survey results, revealing that around 50% of Thrivers and 48% of All Pet Pros did not list their inventory online, presenting a clear opportunity for expansion in this area. D’Agnolo highlighted the need to market towards new customers likely to shop online rather than merely guiding in-store shoppers to digital platforms.
Overall, the survey showcases varied levels of optimism and challenges within the pet industry as businesses look towards 2024. This comprehensive analysis provides a detailed glimpse into sales trends, marketing strategies, product performance, and the operational dynamics facing pet retailers today.
Source: Noah Wire Services