The future of pet retail

When it comes to retail, not all segments are created equal. Pet retail is forecast to grow by eight per cent a year until 2030 – one of the highest returns of any retail segment – equating to a total global turnover of $277 bn. The industry is strong and expected to remain so – but what will it look like in the future?

The major retailers in the industry – Fressnapf, Petco, PetSmart and even US retailer Walmart – have diversified their offerings to provide pet owners with a range of one-stop services alongside pet products. Becoming a one-stop shop for all pet needs is crucial. This goes beyond in-house veterinary and grooming services to include more personalised elements: tailored training programmes and individual nutrition plans, for example. For smaller providers, this means collabora­ting or partnering with other specialist businesses in the region to leverage the power of the shop local concept.

Becoming a one-stop shop also means staying ahead of industry trends as new product categories emerge with the humanisation of pets: wet wipes, calming products, smart cat litter, or nutritional supplements.

Although the e-commerce segment grew during the pandemic, the opportunity to engage with customers in store is something that could not be replicated online. After all, 80 per cent of customers believe that the experience a company offers is just as important as its products and services.

There’s nothing better than offering live animals in store – from high-quality, regulated sources, of course. Hand in hand with this go the animal enclosures, which captivate the consumer and prio­ritise the welfare of the animals. This includes an appealing exterior, backgrounds with vibrant, natural graphics, strategically placed lights that highlight key features of the enclosures and a species-appropriate design that allows the animals to display their natural behaviours. In addition, time-limited experiences will stimulate interest, such as free pet treats, photo opportunities, seasonal decorations and family taster days.

Keyword sustainability: from litter bags to litter to pet food, pet owners look for everything that is environmentally friendly. They favour brands that align with their values of responsible sourcing, sustainable production methods and eco-friendly materials.

As pet owners have a high affinity with technology, significant growth is predicted in the pet technology sector. This often reflects what we see and adopt for our own lives as humans. In this case, wearable devices for our pets, such as smart collars and GPS trackers, are becoming increasingly popular. With advanced technology and data analytics, a pet’s health, activity and location can be monitored in real time. Pet owners will also continue to rely on the convenience of automated feeding systems to ensure consistent mealtimes for pets.

Customers will also want to use modern technology in shops to discover and pay for new products. It is predicted that QR code payments will increase by 27 bn dollars by 2030.

The fact that people really love their pets is the reason for the increasing growth rate of the pet trade. The pet population is growing worldwide, pets are living longer and we are willing to spend more on them. This is a great opportunity for retailers to capitalise on. By implementing personalised services, experiential retail, sustainable practices and innovative technology, they can boost the growth of their business.