Pets at Home says seamless shopping and customer loyalty focus helped raise profits and sales
Pets at Home today said that its investment in seamless shopping and a focus on customer loyalty were delivering results as it reported a half-year rise in sales and profits.
The animal care retailer, a Top50 retailer in IRUK Top500
research, said that developing its omnichannel capabilities had enabled it to manage its inventory better while it had also improved its handling of deliveries. At the same time, it said, it had improved its online customer experience with resulting improvements in online conversion and average transaction volumes and value.
Some 50% of online orders, it said, were now picked up in store.
The retailer has also made loyalty a focus through its VIP loyalty club, which uses personalised communications to target and upsell customers. VIP customers enjoy exclusive access to its first subscription service – on regular deliveries of flea treatment.
"We have seen a strong start to customer sign ups, the majority of which are incremental sales from pet owners who have never previously purchased flea treatments from us," said Pets at Home group chief executive Ian Kellett in its half-year statement.
The retailer says innovation supports customer loyalty – which it achieves through introducing new products – and that fun and educational events such as children's pet workshops give customers more reason to visit its shops. By the end of the period it had 427 Pets at Home stores, including eight opened during the half year.
The update on multichannel strategy came as the retailer reported sales of £441.3m in the 28 weeks to October 13. That's 9.1% up on the same time last year. Pre-tax profits of £46m were 12.4% ahead of the £40.9m reported a year earlier.
Ian Kellett said: "We are pleased that our investment in seamless shopping is delivering results with increased volumes, basket spend and the launch of our first subscription service.
"In a more difficult trading environment, we continue to build Pets at Home for the future and are confident in the long term outlook for our unique offer in the resilient pet market, in particular, the developing potential of our Services business as we see it mature and grow."