Pets are now a cash register's best friend.
Pampering pets has become big business in
Canada, with items such as apparel, shoes, food and carseats
helping to drive sales in a market estimated to be worth as much as
$4.5 billion a year.
Today's pet owners can find just about anything
for their pets - from heart-shaped rhinestone sunglasses or hiking
boots for their dogs, to seatbelt harnesses and
Harley-Davidson-themed collars for cats. There are wheelchairs to
assist pets with disabilities, filet mignon-flavoured toothpaste
for those who want to make brushing Rover's teeth more palatable
and multiple designer options, including pet carriers from Juicy
Couture, better known for its contemporary apparel for women and
men.
"The Canadian pet sector is thriving," says
Louis McCann, executive director of the Ottawa-based Pet Industry
Joint Advisory Council of Canada (PIJAC), a not-for-profit,
member-based organization that advocates on behalf of the Canadian
pet industry.
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| Photo courtesy of Laurel Kostuk |
| Urban Dog owner Laurel Kostuk has Meiko
outfitted with hiker boots and a designer-inspired plaid
jacket. |
"It's a vibrant growing industry as evidenced
by every mass-market operation (stores such as Zellers, Costco and
Wal-Mart) getting into the pet sector and increasing the shelf
space in their stores for pet products," adds McCann.
According to McCann, the industry has grown
from a value of about $3.5 billion in 2001 to $4.5 billion today.
"People are spending more. There are lifejackets and strollers for
their dogs. There is demand for dog apparel, dog jewelry and dog
perfume and not only is this also evidenced in (more) pet food
choices and pet products, in the veterinary field in major city
centres they will have cancer specialists and chemotherapy for your
pet."
Statistics Canada says Canadians have increased
spending on their pets from $277 per household in 1999 to $377 in
2005.
The trend is being called the "premiumization
and humanization" of pets. It's all about the introduction of new
products, particularly those with a strong health or luxury angle,
that will play a significant role as manufacturers appeal to the
parental nature of pet owners, offering major improvements on
existing products.
In the U.S., the non-food pet supplies market
is forecast to grow from US$9.9 billion in 2006 to nearly US$15
billion by 2011. Similar figures for Canada were not available.
According to a recent report on U.S. pet
supplies by Packaged Facts, which publishes market intelligence on
a wide range of consumer industries, this will mean pet-product
development trends that will include "human" enhancements, such as
the use of higher-quality materials as well as natural and organic
substances.
Pet products of all types will also offer a
wider range of styles designed to be more convenient and match
different home decors.
"It's a good time to be in the pet industry,"
says Karen McCullough, director of marketing for Winnipeg-based
Petland Canada, which operates both company-owned and franchise
stores across the country.
While Petland stores carry a range of products
from basic needs to higher-end items, McCullough says the American
"premiumization and humanization" effect is definitely evident in
Canada.
"People are looking for more these days -
absolutely. We see a lot now in higher-end products, people are
demanding more for their pets, from treats to grooming supplies to
brand-name toys and even clothing," says McCullough.
When it comes to toys, it's just like buying
for your own children, she adds. "We get Shrek (pet) toys and any
big movie that comes out now, you will see pet toys as well.
They're merchandising for pets as well as children."
At Urban Paws, described as the largest
independent pet food and accessories store in Kingston, Ont., owner
Jennifer Allan agrees that pets have taken on an increasingly
important role in the family.
"People are treating their pets better. They're
wanting to move from things that are just utilitarian - people are
using their pet to be an extension of who they are," says
Allan.
She adds an increasing number of her customers
are going after the bling when it comes to shopping for their
pets.
"People are looking for the funky little
T-shirts and the bling-bling like the designer collar and
leashes."
Allan says her operation competes well with the
big-box counterparts such as PetSmart and Petcetera, both of which
operate within the same general trading area.
In part, that's because Urban Paws runs an
adjacent veterinary operation with the store and the animal
hospital creates traffic and customers for both.
However, Urban Paws has also found a niche by
emphasizing quality customer service and sourcing products that the
big-box stores don't carry.
"We cater to a different market. Our product
lines are quite different," says Allan. "Our unofficial motto is
'from functional to funky'. We carry a lot of different kinds of
things that are not found in Kingston and we spend a lot of time
searching for new products.
"There's always going to be the consumer driven
by price point who will buy their things at Wal-Mart or PetSmart,
but there's also a number of discerning consumers who look for more
information and who really appreciate that we have the staff to
help them make the best choices for their pet."
That is also evident at The Urban Dog in
Edmonton, which caters to canine and cat couture for the pampered
pet.
Urban Dog owner Laurel Kostuk opened her store
three years ago after failing to find the type of products she was
seeking for her own dog.
"I was trying to find products for him that fit
properly in clothing and shoes that were stylish and found that
there was nothing in Canada," says Kostuk.
Now Urban Dog designs and manufactures its own
products that it sells worldwide. It also offers a selection and
quality product that Kostuk says can't be found at her big-box
counterparts.
"I don't compete against the big-box stores -
they actually refer people to our store," she says. "There are
things I don't have and I will refer people to them.
"There's no competition with them because the
quality isn't the same. That's why people come to us, they get the
quality, the fit and the uniqueness.
"We're a small independent but we're big - we
do huge volume here," she adds. "In the last year we probably sold
10,000 sets of boots just in our store."
However, the big-box stores still hold the
lion's share of the retail pet market sector.
An estimated 60 per cent of the industry -
depending on the region of the country - is dominated by big-box
players such as Petcetera, Petland, Pet Valu, PJ's Pet Centres and
PetSmart, according to PIJAC Canada.
PetSmart, which has about 50 stores in Canada -
and continues to expand; it acquired 19 Super Pet retail stores in
Canada earlier this year that will be rebranded under the PetSmart
banner - is bullish on the Canadian market.
"We've certainly identified Canada as a growth
area for us. We know there are many pet parents in Canada, and a
lot of opportunity to expand that audience," says Michelle
Friedman, spokeswoman for the Phoenix-based PetSmart Inc.
PetSmart's target audience - as with most other
pet retailers - tends to include people in their 20s who are
delaying getting married and having children and are turning to
pets instead, as well as empty-nesters who decide to get a pet and
have the disposable income to pamper their new addition.
But there is one potential cloud on the
horizon. If there's a drop in disposable income, the pet sector
will take a hit.
"When there's a crunch, this is one of the
industries that sees it," says PIJAC Canada's McCann. "It's one of
the first areas where spending is cut back."
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