Pets at Home reports 6.4% sales growth in H1
Published: 9 January 2012
A record year of new store openings has helped fuel Pets at Home's sales growth for the first half ended September 2011.
To date the company has opened 26 new stores and is planning a further six openings before April 2012. The company revealed that the new stores, which include its 300th, recently opened in Salford, are already performing ahead of expectations.
Like-for-like sales were also positive, up 1.3% - a pleasing result in the context of weak consumer confidence and pressures on disposable income during this period.
Pets at Home is also crediting the growth of its own brands for the sales increase, with the introduction of its own brand Advanced Nutrition range of pet food gaining a positive reaction from consumers and sales already outperforming the company's previous Silver brand. Plans to expand its own-brand offer includes the implementation of a global outsourcing operation in Hong Kong, which will begin operations in April.
The firm's e-commerce business has also exceeded its target of one million visitors per period, and an extra 2,000 product lines have been added.
The company said of the results: "We have delivered a robust first half performance against the backdrop of a very challenging economic environment. We have no reason to believe that there will be any significant improvement in the environment over forthcoming months and expect trading conditions to remain difficult. That said, given the strength of our core business and the continued investments made in new stores, our people and our infrastructure, we remain confident about the future prospects of Pets at Home and believe we are strongly positioned to take advantage of any future recovery."
The company's group chief executive Matt Davies recently announced he was stepping down from his role in Spring 2012. The company told DIY Week that, as yet, a replacement has not been found.