Pet Stores

BARRIERS TO ENTRY
High barriers to entry mean that new companies struggle to enter an industry, while low barriers mean it is easy for new companies to enter an industry.

CAPITAL INTENSITY
Compares the amount of money spent on capital (plant, machinery and equipment) with that spent on labor.
IBISWorld uses the ratio of depreciation to wages as a proxy for capital intensity. High capital intensity is more than $ 0.333 of capital to $ 1 of labor; medium is $ 0.125 to $ 0.333 of capital to $ 1 of labor; low is less than $ 0.125 of capital for every $ 1 of labor.

CONSTANT PRICES
The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using the current year (i.e. year published) as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving only the "real" growth or decline in industry metrics. The inflation adjustments in IBISWorld’s reports are made using the US Bureau of Economic Analysis’ implicit GDP price deflator.

DOMESTIC DEMAND
Spending on industry goods and services within the United States, regardless of their country of origin. It is derived by adding imports to industry revenue, and then subtracting exports.

EMPLOYMENT
The number of permanent, part-time, temporary and seasonal employees, working proprietors, partners, managers and executives within the industry.

INITIAL PUBLIC OFFERING
A type of public offering in which shares of a company are usually sold to institutional investors who, in turn, sell to the general public on a securities exchange for the first time.

PET BOARDING AND DAY-CARE
Long- and short-term options for owners who need assistance looking after their pets. Services include feeding, walking, grooming and lodging.

PET PARENTS
Pet owners who are enthusiastic about their pets and treat them as members of their family.

Since pets are often viewed as family members, for most of the past five years, favorable economic conditions enabled pet owners to increase spending on the industry's products through rising disposable income levels. Over the five years to 2022, per capita disposable income has improved at an annualized rate of 1.7%, contributing to the splurge on industry products by pet owners. Moreover, pet owners have gradually shifted preferences to higher-quality organic, gluten-free and grain-free pet foods and luxury pet therapy sessions. However, household discretionary spending was affected in 2020 by the COVID-19 (coronavirus) pandemic, which challenged the industry. Therefore, customer traffic declined as coronavirus fears grew. Consequently, industry demand softened and pushed customers to buy pet goods from online retailers, which is expected to constrain industry profit. However, as the pandemic subsides, industry profit and revenue are expected to rebound in 2021.