After registering a $2 million decline in its net income to $29.5 million last quarter, PetSmart Inc. is rethinking its strategy. The company hopes to improve its bottom line with its recent move of exiting the horse equipment business and refocusing on products and services for smaller pets, according to BloggingStocks.
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Exiting the horse equipment sector seems like a shrewd move, opening more floor space for its bread-and-butter clientele of smaller animals such as dogs, cats, hamsters, fish and birds. And why not? Overall, PetSmart wants to take a greater chunk of the astounding $41 billion people spent on their dogs and cats in 2006. And the number is expected to increase to $51 billion by 2009.
PetSmart hopes to offer more space for its existing pet services, which include obedience training, grooming and boarding for dogs and cats, as as well as spaces for dog parties. PetSmart says its pet service business has grown from essentially nothing in 2000 to $450 million, or 10% of overall sales, in 2006. — Gerald Magpily
See BusinessWeek article
See BloggingStocks post
