Pet category must cater to doting 'moms' and 'dads'.

Is there a middle of the road when it comes to pet care? Yes, and no. Yes, if a retailer wants to marginally compete in the category, sticking in a toe, but not taking the plunge. No, if that means lumping pet-care in with other center-store . That strategy can put retailers vying for the valuable customer the category attracts in a dangerous middle ground--particularly in the drug channel. Given the limited space the average drug store can afford to invest in pet care, it is also important that the items are buried in the middle of an aisle where customers would never dream of looking for it.

The reality is, adequate space to blow out the pet category is not available within the drug store footprint. Even with its mass scale, Wal-Mart chose to stretch outside its proverbial walls to give it infinite space; in late March, the world's largest retailer launched its online pet store at Walmart.com. The effort is designed to compliment its brick-and-mortar pet category by offering Internet-only items not found in stores.

Whether they shop online or in a physical location, pet owners--83 percent of whom refer to themselves as "Mommy" or "Daddy," according to Tricia Doty, Walmart.com's director of merchandising, home and family--are looking to not only keep their pets well fed, but also to enhance their lifestyles. And for some (think Paris Hilton and Tinkerbell, her well-heeled Chihuahua), animal friends are a way to enhance their own image.

As sure as there are different breeds, from Chihuahuas to St. Bernards, there are different sets of pet product consumers.

Research analysis conducted by Nestle Purina PetCare found that while some shoppers are value-driven, many others are actually switching from what they perceive as middle-of-the-road retailers, to specialty outlets that offer more value-added products, greater selection and services.

Want to know who this high-dollar, high-margin customer is? Check out the new reality cable TV program, "Show Dog Moms and Dads" on Bravo. One couple on the show, Brandon and Ryan, boast that their male Toy Fox Terrier Liberace has more expensive clothes than most humans.

Retailers trying to appeal to both sets of consumers can find a happy medium. While catering to Brandon and Ryan is not necessarily the right business model for the drug store channel, Nestle Purina Pet Care advises that getting out of the "middle of the road" is a business imperative for retailers hoping to avoid losing business to competitors.

For drug store retailers, it's about understanding the local customers' needs and picking your spots. Downtown stores probably don't need extensive pet care sections; urban residential stores probably need more variety in cat food; suburban stores perhaps should stock multiple skus for large, active dogs.

In the drug store channel, the latest available figures from ACNielsen show the category is up 6.7 percent to $78.2 million.

Dominant customer breeds According to the ACNielsen Homescan Consumer Facts 2004 Report: * 60 percent of U.S. households purchased at least one pet care item in 2004 * 38 percent of consumers who purchased a pet care item were living comfortably * 27 percent of consumers who purchased a pet care item were empty nesters * 24 percent of consumers who purchased a pet care item had an annual household income of $70,000+ * 20 percent of consumers who purchased a pet care item were empty nesters living comfortably .