Pets at Home reports strong first half growth
Pets At Home increased its revenue by 10.2% to £381.5 million in the first half of its financial year as it continued to pursue its growth strategy.
In the 28 weeks to 9 October, like-for-like sales rose by 4.2% after they increased by the same percentage in the second quarter.
Merchandise revenues grew by 8.9% to £348.3 million driven by new store openings and continued strength in pet food and accessories.
Services revenues climbed by 27% to £33.2 million as the retailer grew its revenue streams from its maturing veterinary practices and Groom Rooms.
During the period, Pets at Home added a net eight stores to its portfolio. This included 10 new stores, one store closure in Knutsford, and a temporary closure of its Rugby store which is to be relocated.
In addition, the retailer opened 26 veterinary practices and 23 Groom Rooms and expects to deliver gross openings of at least 25 new stores, 60 new veterinary practices and 50 new Groom Room salons in the financial year.
There was strong revenue growth of 28% in the retailer’s underlying joint venture veterinary practices. Like-for-like revenue increased by 15.5%.
Pets at Homes’ loyalty club, VIP Club, gained 600,000 new members in the half year to reach a total of 2.6 million. VIP card swipe rate at store tills in the second quarter represented 58% of revenues, compared with 52% at the end of the the previous financial year.
The retailer said it continues to trade in line with its expectations for the full financial year.
Nick Wood, Pets at Home chief executive, said: "We are very pleased with the strong like-for-like growth of 4.2% in the first half of our financial year. Our VIP Club continues to be a strong contributor to this growth, alongside both our new and existing veterinary practices and Groom Room salons."
"This positive momentum across the business gives us further confidence in our ability to deliver on our expectations for the full financial year."
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