Pets at Home launches turnaround plan for retail arm
Pets at Home has launched a turnaround plan for its retail business as it reported declines in group first half revenue and profit.
In the 28 weeks to 9 October, group pre-tax profit fell by 29.1% to £36.2 million while revenue edged down 1.3% to £778.3 million.
Vet group consumer revenue increased by 6.7% driven by growth in average transaction values and Care Plan revenues. The division’s underlying pre-tax profit was also up, rising by 8.3% to £44.9 million.
In contrast, revenue in Pets at Home’s retail business dropped by 2.3% as underlying pre-tax profit fell by 84.1% to £3.5 million. The company has now said that urgent action is required to return the retail business to growth.
Subscribe to TRBIan Burke, Pets at Home interim executive chair, said: “Stepping into the role as interim CEO 10 weeks ago, I set out with a clear agenda – to establish a firm grip on the issues facing our retail business, whilst maintaining the positive results we’re seeing in areas such as Vets.
“For over 30 years, Pets at Home has been a business with a clear purpose, an established market and loyal customer base, but it’s clear that urgent and necessary action is needed to return the retail business to growth to meet both our own expectations and those of our investors.
“I’ve spent time visiting over 100 Pet Care Centres and engaging with colleagues at all levels of the business to establish where the challenges are isolated, resulting in the implementation of a retail turnaround plan with four clear priorities of product, price, execution and cost. We are returning to our retailing roots to stabilise and rebuild momentum in our Retail business, and to lay the foundations for a new CEO in due course.
“At the heart of our business remains 17,000 trusted and passionate colleagues and vet partners, and it’s through them that we will deliver future growth. I am grateful to them all for their unwavering dedication and energy and together we’ll ensure the business can thrive again.”
