An island of bliss

Scandinavia presently resembles an island of bliss. The economic and financial crisis that has plunged many countries in southern Europe into recession has had a minimal effect on Sweden, Norway, Finland and Denmark. Even if Scandinavia, primarily Sweden, is indirectly influenced by the crisis in Europe on account of its dependence on exports, the Nordic countries are still achieving comparatively high growth rates.
It is no different in the pet supplies sector. But where there’s a big cake, there are also plenty of people wanting a slice of it. Competition has increased significantly in recent years, even in Scandinavia.
This is perceptible in the pet sector in particular. More and more chains have developed in the different countries and are seeking salvation in growth. Many of these firms are backed by a strong investor who is providing the cash needed for expansion. The losers in this situation are the classic pet shops, as the closure of many small businesses shows.
Two players in particular stand out from the countless speciality store chains in Scandinavia. One of these is Zoo Support Nordic of Sweden, the product of a merger between Arken Zoo and Djurmagazinet. The second is the Finnish speciality retailer Musti ja Mirri with over 100 stores, which has now expanded into Sweden.

Like other pet store chains operating in Scandinavia, both of these benefit from the fact that, although the pet populations are scarcely increasing, more and more pet owners are prepared to spend more on their pets than before. Premium products, natural and organic pet food products and interactive accessories above all are the front runners in sales here.
Attractive stores, an extensive pro­duct range and competent specialist advice have enabled the speciality trade to claw back market share from the supermarkets in the last few years. Increasingly aggressive price promotions by the pet store chains are ensuring that even price-conscious customers are now shopping to a greater extent in speciality stores.
It will be interesting to see, however, how Scandinavian pet product retailers respond to the challenge of e-commerce. Some of the leading store chains are already running their own online shops and working on cross-channel concepts to coordinate their online and offline…