Tuesday, August 08, 2006

Chains want sales to go to the dogs - and cats - drugstores marketing pet products

There's plenty of potential in pet products--for the savvy marketer. "Your pet is eating more often than you're shampooing your hair," Rob Bevis, pet buyer, Hook Drug Division, pointed out.

Some chains are capitalizing on the opportunity. More need to do some work to compete, as the sales figures indicate: Sales of pet food and pet supplies remained flat at chain drug stores in 1993.

But the opportunity remains. A pet department can provide drug chains with greater profits and interesting traffic-building opportunities.

According to a May 1992 survey from the American Pet Products Manufacturers Association (APPMA), 53 million dogs and 62 million cats live U.S. homes, and thanks to a continued increase in the number of cats per cat-owning household, cats are extending their lead. The number of birds has reached 14.6 million, while the number of freshwater fish (89 million) and marine fish (5.6 million) has also increased.

"Two hundred thousand households took part in this survey," said Claire DeNicola, director of public relations for the association. "There are thousands of different cat and dog products in the marketplace--no one store can sell them all. But, we find that pet owners are putting more emphasis on their animals."

The competition

Grocery stores remain the leading outlet for dog food, treats and chew items, but since 1990, they have lost business to other channels. According to the APPMA, grocery stores account for 62 percent of dog food purchases, while drug stores trail discount stores, feed stores, pet stores, veterinarians, pet food warehouses and warehouse clubs, with only two percent. Meanwhile, cat owners purchase 72 percent of their cat food in grocery stores and only 2 percent in drug stores.

Chain drug store retailers fare a little better in other categories. For instance, 9 percent of the total households surveyed purchase flea-tick products at the drug store, while 6 percent purchase rawhide chew items. Chain drug store retailers sell 4 percent of the food treats and 7 percent of the toys.

When examining cat households, percentages at drug stores don't change greatly. Two percent of the households purchase cat litter from drug stores; 9 percent purchase flea/tick products; 8 percent, toys; and 4 percent, treats.


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