Progressive Grocer - September 2017 - 72

Unleash your potential!
How the Pet Category Can Help You Drive Total Store Success
nowledgeable grocers have realized the many opportunities in pet care, viewing the category as not just one of
many departments in their stores, but one with the potential
to increase total store sales and influence their customers'
decisions.

K

At $63 billion strong, pet care has been growing by more
than $2.5 billion a year since 1994, according to the American Pet Products Association. And it stands as the 8th most
frequently shopped grocery category out of the 305 tracked
by IRI.

If you want to be part of the consideration set, then appealing
to pet shoppers is clearly good business. Consider the fact
that 68 percent of U.S. households shop the pet category.
And that the country's two largest generations, Millennials
and Baby Boomers, are also the two biggest age groups when
it comes to pet ownership. That bodes particularly well for
the future, now that Millennials are entering their prime
spending years.

Lost Opportunity.

Driving Trips. That's because pet care has the unique
ability to generate traffic, triggering more shopping trips than
any other category, according to a Nielsen study. On average,
57 percent of the category drives a trip to the store (compared
to 31 percent for a department like personal care or just 24
percent for snacks), Nielsen found.

It's a lot to miss out on,
but that's exactly what's
been happening for some
time. Grocery retailers
have long lost out on pet
sales, says The Cambridge
Group, because shoppers
lacked awareness about
the quality of pet food
offerings and retailers
lacked effective merchandising programs.

These trips, of course, are also opportunities for pet parents
to shop other categories across the store. And research shows
that they're doing just that.

And the data bear them out. The total store impact of losing
the pet shopper results in a seven to 17 percent decline in
trips, according to Nielsen.

Boosting Basket Size. Pet owners spend 31 percent

However, if you're willing to prioritize the category and invest
in it, Progressive Grocer reported last February, you actually
have the opportunity to tap incremental sales of more than
$5 billion. In fact, retailers who have prioritized the category
have been found to have four times higher performance than
retailers with below average pet performance.

What the savviest of these retailers understands, though, is
that the true potential of pet isn't just in its impressive size
and growth, but in the impact this center-store powerhouse
can have on their total grocery business.

more per trip than non-pet owners for all their needs across
the entire store, according to Nielsen Channel Facts.
In fact, according to a report last October by the Cambridge
Group, pet care shoppers not only have the biggest and
fastest growing basket size, but their trips are highly planned
too; shoppers plan pet care purchases more than any other
department, the report said, and they choose their destination based on these efforts.

It couldn't be clearer: Prioritizing pet care and catering to pet
shoppers is a savvy business move, because winning in pet
means winning across the entire store. n



Table of Contents for the Digital Edition of Progressive Grocer - September 2017

Contents
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