Pets at Home profits slump as three-year plan progresses

Pets at Home reports that profit before tax for the year ending 29th March fell to £84.5 million from £96.4 million a year earlier. This was the result of the retailer shelling out £13 million on lowering prices. Total revenues were, however, 7.8% ahead, at £898.9 million, whilst omnichannel revenues of £51.4 million were up 75.1%.

“Our plans to reposition retail are working, more customers are coming back to shop with us. But it hasn't been easy,” says Peter Pritchard, Group CEO. “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.”

He adds that year one of the retailer's three-year strategy has delivered, 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."

Catherine Shuttleworth, CEO at Savvy, comments: “With Peter Pritchard in place and a clear plan of action to maintain trading and drive sales, we think that Pets At Home is a retail business that has the ability to thrive on the High Street with a unique offer and plenty of positive reasons to visit. The offer is strong but the stores, which are run by passionate pet lovers, should continue to deliver great advice and product to the pet living public of the UK.” 

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