Retail giant Walmart is launching a dedicated pet services center in Dallas, Georgia, with plans to expand to other locations across the country.
Walmart
Walmart is venturing into the pet services market with a specialized center that aims to attract customers seeking veterinarian visits and dog grooming appointments in addition to groceries.
Located in Dallas, Georgia, the first-of-its-kind center will serve as a pilot for Walmart. The company has a long history of selling pet products, including its own brand of dog food called Ol’ Roy, named after the company’s founder. With the introduction of the pet services center, Walmart is expanding into a more lucrative segment of the pet industry, offering health care and other services. Walmart already offers top pet medications in its pharmacies.
Although the center will bear the Walmart name, it will be staffed by employees from PetIQ, a vet care and pet product company. PetIQ has been operating vet clinics in over 65 Walmart locations since 2016.
Kaitlyn Shadiow, Vice President of Merchandising for Pets at Walmart U.S., stated that the Georgia location is a pilot and that Walmart plans to open more centers next year. According to a study by Morgan Stanley, services represent about 40% of the total revenue in the pet industry.
In recent years, retailers have increasingly recognized the potential of the pet industry, as more consumers treat their pets as family members and spend significant amounts on veterinary care and pet accessories. Retailers such as Kohl’s and Lowe’s have capitalized on this trend by dedicating space to pet items in their stores.
Retailers like Chewy and Petco are also entering the pet health care market.
Walmart
Last year, consumers in the U.S. spent $136.8 billion on pets, with vet care and products comprising a significant portion of the industry’s revenue at $35.9 billion, according to the American Pet Products Association. As the pet boom related to the COVID-19 pandemic wanes and consumer spending on pet toys and supplies decreases, retailers like Chewy and Petco are focusing on pet health care to fuel future growth.
According to Anna Andreeva, an analyst at Needham & Company, the pet industry is an attractive sector for retailers since consumers are typically willing to spend on their pets even during economic downturns. However, some recent reports suggest that price sensitivity among pet owners is increasing, leading to a preference for cheaper pet food.
Walmart could benefit from its reputation for offering low prices, which has been an advantage in its grocery business. The pet services center will provide a range of vet and grooming services for dogs and cats, including wellness exams, nail trims, teeth cleaning, and haircuts. Walmart also plans to offer automated ordering for pet products through a subscription-based service.
Walmart has previously ventured into new businesses such as offering lower-cost medical appointments through Walmart Health clinics. While the expansion of these clinics has been slow, Walmart plans to have a total of 48 health centers across several states by the end of 2023.
The pet services center will be located next to a Walmart store, allowing customers to conveniently access other products. The center will also have a retail space where Walmart will sell its private label pet brands. Additionally, customers can leave their pets at the kennel overseen by PetIQ employees while they shop at the Walmart store.
