Articles - Pet directory, Pet information, Veterinary

Chains can cater to pet consumers via a family-oriented destination.

Despite a compressed footprint, retailers can increase the likelihood that customers will buy pet products in drug by positioning the category as a destination and designing sets around meeting consumers' needs versus generating the greatest margin.

"If you treat [the category] differently, you will have different results," said Paul Cooke, vice president of trade and industry development at Nestle/Purina. "The pet consumer is one of the best customers who walks in your front door. They are family-oriented, many times have higher and more disposable income, and they shop other categories." Currently 8-of-10 drug store shoppers buy pet products. Yet only 6 percent of dog owners and 11 percent of cat owners buy pet food in the drug store, with cat food sales driven by small-sized cans of wet cat food, according to Nestle/Purina.

Making drug a destination could pay handsomely. Research snows pet owners spend up to $9.57 across other categories for every dollar they spend on pet products, said Cooke. And consumers spend more on their cat or dog over its average life span than they spend in the same period on soda, snacks, cereal or baby care, according to ACNielsen Channelfacts.

People are investing more and spending more money on their pets," said Kelly Vanasse, a spokeswoman for Iams Co., noting that fueling that trend is a focus on premium nutrition for pets.

Last year, according to the American Pet Products Manufacturers Association, Americans spent more than $34 billion on their pets, with an average of $433 per year for 12 years on dogs and $338 per year for 14 years on cats. Wal-Mart recently proved that it's capitalizing on the trend by launching a Web site dedicated to pet food and supplies beyond what's offered in its bricks-and-mortar locations. Vanasse said drug retailers can attract more shoppers to the category by creating a warm and welcoming environment via the use of graphics reflecting the pet as part of the family. She also recommends linking with a cause like pet adoption, as well as offering educational materials, such as how to introduce a new puppy to a household with children. A line of pet accessories catering to first-time puppy or kitten owners also can fit the limited footprint. MilkBone, for instance, recently launched a line of branded pet accessories, including toys, collars, leashes, bowls, beds, apparel and rawhide. Vanasse added that it also could be a competitive advantage for the pharmacist and front-end staff to have a basic understanding of pet food. Cross-merchandising pet products with brands consumers already are buying, like Febreze (eliminates pet odor), Bounty (cleans off dirty paws) and Swiffer (grabs pet hair off the floor), also can grow sales. What becomes a challenge, however, is customizing the mix to fit local market demographics. Nestle/Purina offers retailers up to four assortment selections to address different consumer situations, such as urban versus rural or suburban versus inner city. Retailers also can zero in on specific dog types. For instance, small-breed dog ownership is growing as baby boomers become empty nesters and look for dogs as companions. Other trends in pet include indulgence, listed as one of Datamonitor's top 10 trends to watch in 2005. Treats count as indulgence items and present the ideal impulse item for the drug store channel.

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