Pets at Home still positive despite ‘flea itch’

PETS at Home, the retailer and national operator of vets practices, had defied a sharp slump in sales in one of its categories, to maintain solid growth momentum.

The group, headquartered at Handford between Wilmslow and Stockport, said total sales in the 16 weeks from March 27 to July 16 had increased 6.4% to £224.2m.
 
Like-for-like revenue growth was 1.7% driven by sales of advanced nutrition, VIP club, services and omnichannel, partially offset by a poor season for health & hygiene products and very hot weather in July.

The slump in sales of health and hygiene products relates mostly to fall in demand for flea treatments. After particularly beneficial weather (warm and moist) for fleas in 2014, the conditions this year were much less favourable to the parasites and demand for treatment tailed off.

Chief executive Nick Wood, said: “Our core strengths in Advanced Nutrition, vet and grooming services have continued to deliver in the first quarter, underpinned by our VIP loyalty club.

“We have been particularly pleased with such strong VIP membership signup and swipe rate of the card at tills.

“Following strong Health & Hygiene product performance in the prior year, we experienced a particularly challenging season this quarter, which alongside a short period of very hot weather in July, created a significant impact on Group revenue performance.”

Despite the blip, Wood said the board’s full year outlook remains in line with market expectations.

After opening four new stores in the first quarter Pets at Home now has 404 stores nationwide and will open more in the second half of the year.

The group said its  VIP club loyalty scheme was continuing to grow, and had added 400,000 members in the first quarter taking total membership to 3.6 million.