A market in turmoil

Following the disappearance of Tukano, the store chains Mr. Pet, Premium Pet and Zootic were the players setting the pace in Slovenia. With nearly 40 outlets between them and well developed concepts, everything pointed to a rosy future. They had all learnt also from Tukano, the former front-runner in the sector which had operated ten stores and experienced a spectacular crash. However, only Mr. Pet appears to have been unaffected by the turmoil in the market and is likely to benefit from the latest developments.
On the wholesale side, Vitantrade had risen to prominence a few years earlier. The family-owned company, which was also the proprietor of the Premium Pet stores, had forged ahead with Trixie and Interquell, but its purple patch lasted just two years. Following payment difficulties in 2017, the company was finally forced to file for insolvency at the beginning of 2018. The retail chain was sold to the Serbian company Plus Plus, which has continued to operate the stores under the umbrella of its Slovenian subsidiary DJ-Pet. In the wake of these events, Trixie and Interquell switched their distribution for Slovenia to the Croatian firm Zoo-Hobby.

The start of 2019 signalled the end for the traditional wholesaler Vetpet and its Zootic pet stores. In a tele­phone conversation with the PET worldwide editors, company founder and owner Marko Levstek cited the unwillingness of Slovenian banks to support the restructuring of struggling companies as the main reason for his firm's insolvency. The entrepreneur expressed his frustration that it was easier for the banks to wind up insolvent companies than to provide them with long-term assistance.
Large portions of Vetpet's wholesale operations have been taken over by the newly established company Sinom, in order to continue supplying retailers in Slovenia. The future of the Zootic pet stores owned by Vetpet was still uncertain at the start of the year. Of the 22 outlets in operation, some were closed at the end of 2018, while Marko Levstek is in discussion with interested parties regarding the others.

There are plenty of possible reasons for the current problems in the Slovenian retail sector, which are not confined solely to the pet supplies business. Insiders in the pet supplies sector report that the…