The Market
Pet ownership is growing worldwide and in the United States. According to the 2009/2010
National Pet Owners Survey, 62% of U.S. households own a pet, which equates to over
71 million homes. Many homes have multiple pets. 45 million households have dogs;
over 38 million have cats; 14 million have tropical fish; 6 million have birds;
5 million have small animals as pets and 4.7 million homes have reptiles as a hobby.
A pet can be a child's best friend, a beloved member of the family, or a companion
to prevent a lonely life.
Scientific studies conducted by the University of Pennsylvania Center for Interaction
of Animals and Society have shown that aquarium watching is linked to a more relaxed
state of mind, and even lowered blood pressure. And in a study conducted by UCLA,
elderly people who owned pets made fewer doctor visits than those without pets.
The need for pets and pet care is clear, and Petland wants to fill that need responsibly
and professionally.
This growing interest in pets has driven pet-related spending in the United States
from $17 billion in 1994 to over $45 billion in 2009 and expected to top $47 billion
in 2010. The development of the “big box” pet store has changed the retail pet category.
These big box pet stores focus on the sale of pet foods and pet accessories. The
majority of their sales are in the pet food category. Most are 15,000 to 30,000
square feet and create an impersonal, almost warehouse-like feeling. The have limited
staff relative to the size of the store and self-service is the norm, much like
other big box mass merchants. Quite often, the only contact a consumer has with
an employee of one of these stores is with the cashier at check out. In spite of
the growth of these big box stores, the two largest chains have a less than 30%
market share of the US pet expenditures.
Although these big box pet stores offer a small selection of small animals, reptiles,
small birds and tropical fish, the focus is clearly on the retailing of pet foods
and their primary competition for dog and cat food are the national and regional
grocery chains.
The opportunity to fill this gap in the market is the focus of the Petland franchised
business model.