Progressive Grocer - April 2010 - (Page 96)

Nonfoods Pet Care and Supplies: Where the Margin Is Grocers that unleash the right products and promos stand to capture a greater share of sales to the 53 percent of all U.S. households with a pet. By D. Gail Fleenor N Last year was a record year for new product introductions in pet supplies in spite of the recession since new products are the main sales Barking up the Right Tree? and tick treatments continue to dominate the driver in the category.The number of new SKUs The pet care and supplies category slowed in pet care segment annually.” rose 84 percent in 2009 to 735 items, accord2008-2009 as consumers “reduced spending Pet stores remain the dominant channel for ing to New York-based Packaged Facts. Natural on nonessential categories and traded to lower- pet supply sales. Only 10 percent of nonfood and organic is a popular theme in pet supplies priced goods,” according to Packaged Facts’ pet supplies were purchased in supermarkets just as in other supermarket categories. February 2010 eighth edition of “Pet Supplies in 2009, while mass merchandisers continued to Although still only 3 percent of category sales, and Pet Care Products in the natural and organic pet supU.S.”The market research firm ply sales rose to $356 million predicts a better showing in in 2009, according to Pack2010 as consumer “pent-up aged Facts. This is a 107 perdemand kicks in.” U.S. retail cent increase over 2004.These sales of pet supplies were products are expected to $10.7 billion in 2009, up 2.5 maintain double-digit percent over 2008. The increases over the next five research firm predicts sales will years, with natural cat litter increase 4 percent in 2010 and accounting for three-fifths of 5 percent in 2013-2014. sales in 2009. Clorox’s Fresh “We are experiencing conStep is following this trend tinued growth in the pet care with a planned launch of “natNew pet treat and oral care lines from a variety of manufacturers have recently hit the marand supply category year over ural” litter this summer. ket, along with toys aimed at consumers’ furry companions (top). year,” notes Richard Gunn, EVP, There was a “sizable shift” merchandising & marketing at Abingdon, Va.- grow as a destination. Supermarkets do have to private label pet supplies during 2008-2009. based K-VA-T Food Stores The 100-plus-unit an edge over far-flung big-box stores in one Store brands accounted for one in five pet supsupermarket chain operates under the Food crucial area: convenience, which is all impor- ply dollars in Information Resources, Inc.-tracked City and Super Dollar names in southwest Vir- tant to the time-pressed consumer.While super- channels, notes Packaged Facts. ginia, southeast Kentucky and northeast Ten- markets do compete with pet stores, K-VA-T’s “We continue to adopt our corporate brand nessee. “We have seen strong growth year over Gunn says these stores don’t always focus on into the pet supply category,” Gunn says. Food year in the rawhide and chew segments. Flea providing the consumer with value proposi- City has an 86 percent private label penetra96 • Progressive Grocer • April 2010 A H E A D O F W H AT ’ S N E X T www.progressivegrocer.com othing is too good for Sadie the dog, Buster the cat or even Jeremy the gerbil.Whether it’s pet shampoo for sensitive skin or chicken-flavored toothpaste, pet care products are big business. The recession may have slowed category sales slightly in 2009, but sales this year should rebound as consumers snap up products for their pet family. tions. “Pet care shoppers tend to be very loyal and seek the best quality and best value,” he says. A Shift to Private Label http://www.progressivegrocer.com

Table of Contents for the Digital Edition of Progressive Grocer - April 2010

Progressive Grocer - April 2010
Table of Contents
Nielsen’s Shelf Stoppers/Spotlight: Baby Needs/Baby Powder
The Lempert Report: Ways to Improve the Nutrition Facts Panel
Best Practices: The Employee Satisfaction, Productivity and Profit Connection
State of the Industry Report: Looking Up, Cautiously
Store of the Month: Standing Ovation
GMA President’s Note: Tackling Obesity: A New Blueprint for Success
Natural Meat: Where Was the Beef?
Produce: Swinging Springtime Sales
Beverage Alcohol: The Case for Beer
Breakfast Foods: The Start of Something Big
Dairy: Probiotics in Dairy and Frozen: A Healthy Pursuit
Baby Care: The Dry Season
Pet Care and Supplies: Where the Margin Is
Case Study: King of the Jungle
Tech Toolbox: A Look at the Latest Solutions
Foodservice: No Strain, No Pain
Sustainability: Green Energy is Blooming
What’s Next: Editors’ Picks for Innovative Products

Progressive Grocer - April 2010