Pets at Home enjoys ‘exceptional’ demand as dedicated owners stock up on food and medicine – but dog grooming and pet sales are on hold
- The retailer has been deemed ‘essential’ and its stores and website are open
- Pets at Home has seen demand surge amid the pandemic crisis in last few weeks
- Annual profit forecast now up to £7m higher than expected, group sales
- But, lack of pet sales and dog grooming could hit company revenue later on
Pets at Home enjoyed ‘exceptional’ demand in the last few weeks of March, with devoted pet owners stocking up on supplies as the nation went into lockdown.
Such is the extent of the retailer’s success in the last few weeks that is has now upped its profit forecast ‘slightly’ for the year.
Pets at Home has been deemed an ‘essential retailer’ and is keeping its stores and online operations open during the crisis, but dog grooming services have been suspended and it is not currently selling any pets.
Staff from ‘non-essential’ roles like dog grooming have been shifted around to jobs dealing with more pressing matters like food and medicine.
In demand: Pets at Home enjoyed ‘exceptional’ demand in the last few weeks of March
The retailer continues to limit purchases across its lines, has implemented social distancing in its stores and says its website remains ‘incredibly busy’, meaning some deliveries may take longer than normal to arrive.
Between 8-9am on Mondays, Wednesdays and Fridays, and until the end of June, Pets at Home is opening its doors exclusively to vulnerable and elderly customers. NHS staff also now have dedicated opening hours and fast track checkout queues on Tuesdays, Thursdays and Saturdays, and will receive a discount on purchases.
Pets at Home, which has around 15,000 staff, has kept its workforce on full pay, including those having to self-isolate for three months. The company, has, however, also launched a £1million ‘crisis fund’ staff who find themselves in financial difficulty.
The group has increased its profit forecast for the year, but admitted its revenues could take a hit given it is not currently selling pets and has suspended its dog grooming services.
Annual profits are now expected to come in around £6-7million higher than expected, with a previous forecast of up to £92million in place. The retailer is no longer giving any financial guidance for next year or beyond owing to uncertainty stemming from the pandemic.
Essential’: Pets at Home has been deemed an ‘essential retailer’ during the pandemic
Let it grow: Pets at Home has suspended dog grooming
The company said: ‘While nearly all of our First Opinion veterinary practices, and all of our Specialist Referral centres, currently remain open to provide urgent and emergency pet health care, in line with industry guidance, we do anticipate reduced customer revenues.
‘This, together with the likelihood of lower store revenues resulting from other necessary measures we have implemented, is expected to have a negative impact on our normal levels of Group turnover as we start the new financial year.’
In a trading update today, Peter Pritchard, Pets at Home’s chief executive, said: ‘While FY20 has undoubtedly ended strongly for Pets At Home during this unprecedented time, the period ahead is uncertain for us all, and Pets At Home will not be immune to these challenges that we collectively face.
He added: ‘Amidst an unprecedented backdrop, never has our role as a pet care provider been more important, and never have we been more determined to serve the nation’s pet owners.’
Speaking to the BBC, retail expert Richard Hyman said that higher demand at the chain might be temporary.
Mr Hyman said: ‘I think what may have happened is that some of the panic buying that we’ve seen domestically has been extended for the same reason for people and pets.
‘I think for supermarkets it will remain at an elevated level as long as the market for eating out is paralysed. Whereas for pets I would expect demand to ease, so this may well be a blip.’
Just before 1pm, shares in Pets at Home were up 0.75 per cent or 1.8p to 241.80p.