When it Comes to E-Commerce, You Can Bet on Pets


by Phillip Cooper, Pet Industry Expert and President, North American Sales & Marketing

As the number of pet parents increase, individuals are doing more and spending more to take care of their “fur babies”. Whether they are buying the basics, like food, grooming and boarding, or their pets are enjoying more lavish lifestyles with stays at pet resorts, it’s clear that pet owners are contributing largely to the growth of the pet industry. The merchandise mix allows for many to capture the demand of generous pet owners on a recurring basis.


Major changes are taking place at all levels. With so many dog owners in the mix, sales in dog food and treats have increased. More pet owners are buying online, creating an explosion in e-commerce.

E-commerce has seen a 92% growth rate in dog food alone.

Brick-and-mortar players might try to capture this growth by implementing e-commerce solutions. The real goal is to offer more of a succinct experience blending both the ease of e-commerce alongside the availability of product at brick-and-mortar.


While e-commerce is expected to stay strong, it will likely not affect the regional pet chain stores. These stores will continue to enjoy growth in double-digits due to exceptional service and a focus on better merchandising. While larger retailers carry a wide array of products, smaller local chains can upsell higher margin goods as those retailers seek to provide a better pet shopping experience. Large, big box stores, like Target and Walmart, will see strong single-digit growth in sales as they continue to carve out their own portion of pet retailing. But as digital sales continue to increase, there is concern for the large box brick-and-mortar stores, which is a nagging worry across many industries in this digital age.


All in all, the general future outlook in this space is very strong. Pets have been elevated to “baby status”, so to those who see their pets as a member of their family, money is no object. Therefore, this is a great time to invest in the pet industry to achieve solid growth and a great return on investment. There are many opportunities here, and major private equity and other equity firms have already been taking advantage of these opportunities.


Please note: This article contains the sole views and opinions of Phillip Cooper and does not reflect the views or opinions of Guidepoint Global, LLC (“Guidepoint”). Guidepoint is not a registered investment adviser and cannot transact business as an investment adviser or give investment advice. The information provided in this article is not intended to constitute investment advice, nor is it intended as an offer or solicitation of an offer or a recommendation to buy, hold or sell any security. Any use of this article without the express written consent of Guidepoint and Phillip Cooper is prohibited.


Learn how Guidepoint can help with your research needs