Pandemic is purrfect time for Pets at Home as ownership boom boost profits
Pet ownership in the UK is going through a so-called "baby boom" – with the Covid-19 pandemic seeing a surge in new owners, according to the boss of Pets At Home.
Pets At Home now has nearly one million customers signed up to subscriptions for product sands ervice s–generating sales of £80 ma year.
Chief executive Peter Pr it chard said he believes this will see a boost in pet food sales, vets services and grooming as households welcome new animals into their lives.
He said :" We see this as a ‘baby boom’ because there has been a significant stepup in ownership. The longterm requirement is the lifetime of the p et and, with more people working from home, more people can have pets at home."
Since the pandemic, the company has enjoyed "essential" retail status – meaning stores could remain open throughout the lock down –helping sales rise 5.1 per cent to £574.4 million in the six months to October 8 compared with the same period a year ago.
In-store sales grew during the period, up 5.8 percent, helped by a 12.5 percent surge in the second quart er, as lock down restrictions eased and customers returned to the shops.
Online was particularly strong, with growth of 65.8 percent and customers making use of click and collect services. Sales using the company' s on lines ervices now account for 15 per cent of all sales, Mr Pritchard said.
Pre -tax profits rose 14.6 per cent to £38.9m, although underlying pre-tax profits, excluding one - off costs, fell 5.1 per cent to £39.6m.
Mr Pritchard added: "When people get dogs, they are thinking of dog walkers, doggy day care, veterinary s ervices and the like. They do an awful amount of research – it's like having a child."
He said the company' s Puppy& Kitten Club has seen record sign-ups but also pointed out that the majority of people getting new pets already have at least one. "We' re seeing more people with pets already rather than new pet owners," he said.
Par t of the boost has come from flexible working, which he believes will allow office workers to spend more time at home with their new pets.
"People are working on a basis of a flexible lifestyle. There has been a really interesting flip–the old phrase used to be you worked from home now and again to escape the office. Now it' s the reverse and people are escaping the home togo to the office ."
The company added that the number of VIP club m embers increased 15 percent year on year to six million, with continued growth in those using services and buying products, despite restrictions.
The business said: "At this stage, absent any escalation of restrictions, or other sig - nificant disruption to our operations, we now anticipate full-year underlying pre-tax profit to be inline with the prior year, with the estimated financial impact of the pandemic not fully offset by this year's business rates relief."