The Poundstretcher discount store chain is set to expand its pet business throughout 400 outlets in the UK.
Poundstretcher is owned by cash and carry giant Crown Crest, based in Leicester. Its latest store in the city, which opened in Raw Dykes Road near Leicester City's King Power Stadium, contained a new Pet Hut department.
Shehzad Tayub, Crown Crest operations director, said: "The concept of the Pet Hut is new to us. We have pet products in normal Poundstretchers anyway, we are just adding more lines. It's a complete new brand we launched three to four months ago."
Poundstretcher is part way through a multi-million pound campaign to open 30 stores during the final three months of the year. The company sees the pet category as a growing market and a big opportunity to grow profits.
Graham Page, Crown Crest non-executive director, added: "The new store in Leicester is 20,000 sq ft store and it means we can give 3,000-4,000 sq ft to the Pet Hut without impacting on the rest of the store."
Poundstretcher's turnover grew from £348 million to £367 million in the year to March 31 as the number of new stores grew, while turnover in Crown Crest's wholesaling division dropped from £97 million to £63 million last year.
Will Poundstretcher’s new pet plans impact on independent pet shops? We sought the views to two award-winning pet store owners.
Janine Tozer, of Not Just Pets in Bath, said: "We already have a Poundstretcher in Frome which sells pet stuff and so far it hasn't impacted too much on our business as far as we know.
“We are obviously disappointed that yet another player is entering the already-stretched pet retail market, especially at the low end. However, in our experience the quality of the products in such stores has not been good at all so I suppose you get what you pay for.
“It is up to the customer to make the decision about whether to save money in the very short term but possibly end up spending more overall when they have to replace items more frequently or whether to buy reasonably priced yet good quality items with pet specialists.”
Piers Smart, of Scampers in Cambridgeshire, said: “Our business is focused on the care and well-being of our clients’ pets. The health of dogs and cats comes first as far as we’re concerned. I would urge any independent pet retailer to take the same stance – stock those products that ensure good health for pets.
“It’s this kind of approach that will distinguish a pet retailer from the likes of Poundstretcher. The furthest thing from the mind of Poundstretcher’s finance director is pet health…he thinks solely about profit.”
If you’ve got a view email neil.pope@tgcmc.co.uk