‘To do’ list awaits new Pets at Home chief executive
Peter Pritchard today assumes the chief executive role at Cheshire ‘pet omnichannel retailer’ Pets at Home – and faces a stiff challenge to reinvigorate its fortunes, says one analyst.
His appointment was announced last November, to replace the then chief executive Ian Kellett, who will remain with the group until May 31.
Mr Pritchard was previously chief executive of Pets at Home’s retail business.
Today, Russ Mould, investment director at Manchester investment platform AJ Bell, said: “It’s the first day in the top job for Peter Pritchard who has become the new chief executive of troubled retailer and services provider Pets at Home.
“Shares in the company fell on his appointment last November, perhaps in disappointment that the company didn’t hire an external candidate with fresh ideas.
“However, the news did coincide with half year results showing an 11% drop in underlying pre-tax profit.”
He added: “Mr Pritchard is an internal promotion and his first challenge is to find a way to cope with growing competition from online players, general merchandisers and supermarkets.
“Shares in Pets at Home have fallen by 37% in value since the company joined the stock market four years ago.
“Why? Well, it has been losing sales to rivals, particularly in food.
“Cats, dogs and other pets may be classified as non-discretionary spend, given how we are a nation of animal lovers and will do anything to keep our furry friends happy, but consumers are likely to still shop around for bargains if they can save a few quid.”
Mr Mould said: “Pets at Home rejigged its prices last year – Pritchard now needs to win back any lost custom and drive up sales volumes.”
Pets at Home Group, based in Handforth, is the UK’s leading specialist pet omnichannel retailer and services provider.
It operates from 444 superstores located across the UK, and provides the UK’s largest small animal veterinary business with 449 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 306 grooming salons
In January this year it announced its third quarter trading statement which showed a 9.6% increase in revenues, to £223.3m
The then chief execugtive, Ian Kellett, said trading momentum in ther merchandise division had built during the Christmas period.
He also declared that, in the year since the group launched its lower pricing initiatives, it had seen a “really strong customer response” to the investments it had made.
