Bright future ahead, says new Pets at Home chief

Cheshire ‘pet omnichannel retailer’ Pets at Home has a “bright future” insists new chief executive Peter Pritchard.

Announcing his first full year results since taking the role in April this year, he said the first year of a three-year strategy has delivered.

Total revenues were 7.8% ahead in the year to March 29, at £898.9m, although pre-tax profits were 16.6%% down at £79.6m.

Mr Pritchard, who was previously chief executive of Pets at Home’s retail business, said today: “We have a bright future.

“Year one of our three-year strategy has delivered, and as a business we are on a stronger competitive footing to return to sustainable profit growth.

“But the job isn’t done yet. As our new CEO, my plan has a bigger focus on digital, tapping into the vast potential of our customer and pet data, and taking action to ensure our vet business reaches its potential.

“Our market has a track record of resilience in a downturn and as we adapt to a changing environment, we will emphasise the things that make Pets at Home unique and best placed to serve the UK’s pet loving owners.”

He added: “Our plans to reposition retail are working, more customers are coming back to shop with us, and we are committed to returning the business to profit growth.

“But it hasn’t been easy. We took decisive action, threw passion and energy into it, and delivered targeted pricing changes to give customers the products that mattered most to them, with the service and value they expect from us.

“Our product innovation this year has been the best I can remember and the investment we made in the development of a subscription service is bringing some excellent results, as is Order In-Store, which brings our full online range to every store in the business.”

And he said: “I’m proud and excited to be taking over as CEO.

“The value of our business is much greater than being a retailer, or a vet care provider.

“It’s the way we can give pet owners a breadth of products, grooming, vet care and other services.

“Combined with the way we can serve them through stores, the website and our pet professionals, the colleagues and vets who genuinely care about customers and their pets.”

Looking forward, today’s statement said: “The pet care market remains resilient, with growth in pet products estimated at around 2% in 2017, and veterinary services at around 5%.

“We again grew our market share in the vet segment and are pleased to say that following our price repositioning work in retail, we have won back share in the food and accessories markets.

“Financial year 2019 will be the second of our three-year financial transition back to sustainable profit growth, and following our progress in financial year 2018, we are determined to achieve our plan.

“In the coming financial year we are targeting like-for-like revenue growth ahead of the market in both retail and our vet group, and a transition back to low single digit underlying group profit growth.

“We remain a cash generative business with a priority to invest in our core capabilities, particularly our vet group.”

Pets at Home Group, based in Handforth, is the UK’s leading specialist pet omnichannel retailer and services provider.

It operates from 448 superstores located across the UK, and provides the UK’s largest small animal veterinary business with 461 practices, run principally under a joint venture model using the Vets4Pets and Companion Care brand names, as well as four veterinary specialist referral centres.

Pets at Home is the UK’s leading operator of pet grooming services offered through its 309 grooming salons.