Is the pet industry finally feeling the bite?
Growing numbers of pet owners are seeking bargains and shunning opulent items as the $87 billion pet product market — still surviving the recession better than most — is showing some signs of slowing down.
So reports Business Week, citing surveys that show more families are cutting back on pet spending, particularly when it comes to luxury items.
Nearly four out of 10 U.S. pet owners in a September survey by Packaged Facts said they’re spending less on pet products, up from 27 percent in February 2010; and three-quarters of them are looking for deals, particularly on non-food items like apparel and toys.
“The totally discretionary stuff is increasingly being cast aside,” said Lee Linthicum, head of food research at Euromonitor. “People still want to spend a fair bit of money on their pets, but they are reevaluating their priorities.”
Retailers such as PetSmart and Petco are turning to promotions to keep customers from defecting to discount stores like Target and Wal-Mart Stores Inc., but that comes with a cost. Discounts caused PetSmart’s profit margins on merchandise to narrow last quarter for the first time in two years, according to David Strasser, an analyst at Janney Montgomery Scott LLC in New York.
“Our industry is not recession-proof — we’re recession flexible,” said Leo Sanders, the owner of a grooming and boarding business in Corning, New York. “People will still spend, but instead of frivolous spending on squeakers and rawhide bones, now they are reading labels and making sure it’s a quality product. And they’re asking for discounts more.”
Joanne Mahon, managing director of Diamond Dogs in the U.K., said sales of the company’s diamond leash and collar combinations, and other upscale items, dropped as much as 25 percent last year. And Joan Volpe, managing coordinator at the Center for Professional Studies at New York’s Fashion Institute of Technology, said tighter household budgets have had a “sobering effect” on pricey pet apparel, such as that unveiled in its annual pet fashion show.
“There has been a turn to practicality,” Volpe said. “The seemingly frivolous items of just a few years ago like net tutus are no longer in demand.”
Posted by jwoestendiek February 28th, 2012 under Muttsblog.
Tags: accessories, bargains, discounts, economy, food, industry, items, luxury, pet, pet products, pet smart, petco, pets, products, recession, retail, sales, spending, stores, surveys
Comments
Comment from Anne’n'Spencer
Time February 28, 2012 at 10:06 pm
I wish I understood it all. I’ll confess I like to see a fine leather collar on my dogs. Every dog I’ve cared for has been fitted with a nice rolled leather collar upon achieving adulthood–or upon arrival in our home. The rolled leather is sturdy, it doesn’t bother the fur on their necks, it looks well as it ages, and it can last for the dog’s entire life. They’re pricey, but I buy them anyway. Aside from that, there’s a small assortment of kongs, squeaky toys, and chewy things. There are heavy-duty stainless steel food and water bowls–also not cheap. And there are dog cushions. Aside from the squeakies, which are cheap and fun, everything else is built to last.
I may be about to break down and buy the Beagle a coat. It will be the first coat I’ve ever bought for any dog. Beagles are sturdy and are built to run around in the cold, but he’s getting so elderly that I think it may be bothering him a bit. We’ll be sure that it’s sturdy, nice-looking, and non-kitschy, as befits his dignity. I doubt we’ve spent as much as $200 on “accoutrements” in the seven years he’s been part of the family. I’d say it’s much better to buy good quality stuff once, so that there are plenty of funds for good food, veterinary visits and shots, treats, and the occasional cheap squeaky toy.
Comment from vida
Time February 29, 2012 at 6:46 pm
I have a sweater for my chihuahua mix, it’s cold here in the winter. I made it. She doesn’t seem to mind the lack of designer label. We feed them as well as we can and get them vet care but one great thing about dogs is they don’t actually seem to require bling. Just love and the basics. Maybe we could learn something from them.
Comment from Alexis
Time February 28, 2012 at 2:14 pm
I don’t think veterinarians got the memo about people having less money. I’m talking about those vets who overcharge and overtest, aggressively push so-called “prescription foods” containing contaminated ingredients (not to mention overprescribing sometimes very dangerous drugs to pets who either might not need or should not have them – malpractice!).
Maybe those veterinarians who are less ethical than greedy will finally GET IT that people just don’t have BIG money. It’s not like the mainstream media and politically-based thinktanks and experts would have everyone believe – that we “consumers” actually have money we are just selfishly sitting on it because we don’t have “confidence” in the economy. The sad truth is that there just is no more money and sometimes – vets, if you are the greedy ones I’m talkin’ to YOU – the choice-that-is-no-choice-at-all has to be made because there IS NO MONEY. The average American today makes less than $15 an hour not even a living wage, has little or no health insurance, gas is at or above $4 per gallon and NOT EVERYONE CAN RIDE A BIKE. If any of the “pet industry” chieftains think that there is any longer a market for “stem cell therapy”, diamond dog collars, five-figure dog houses, five figure surgeries, etc. etc. etc. ad nauseum, well – they need to look to the harsh reality of day to day existence in this economy for the majority of people.