The #1 US specialty retailer of pet food and supplies has more than 1,100 stores in the US and Canada is considering expanding it’s Private brand offerings. According to an article posted on Bloomberg.com:
private-label products such as specialized leashes, shampoo and collars, said Moran, who had been chief operating officer since the end of 2001.”
Hard goods are about twice as profitable as food and bring customers into stores because the products are unique, said the executive, who previously worked Toys “R” Us and Sears Holding Corp.
Moran said he wants to increase store-brand sales to as much as 30 percent of its revenue in the next five years from 17 percent currently.
To finance the expansion of services and private-label products and reduce costs, PetSmart has slowed new store growth, Moran said. During the next three to five years, PetSmart will open 40 to 60 stores a year, compared with the 80 to 100 it had targeted annually from 2004 to 2008, he said.