Pets at Home’s latest trading update suggests that subscriptions and membership services are becoming an increasingly important part of its growth story.
In its Q1 FY27 results, the retailer reported a 3.9% increase in total consumer revenue to £614m, while retail consumer revenue rose 4.9% to £399m. The company said it gained market share during the quarter, supported by initiatives within its Retail Turnaround Plan.
Alongside the improving retail performance, Pets at Home continues to strengthen the recurring-revenue side of the business. The retailer revealed that 15.3% of consumer revenue now comes from subscriptions, up from 14.5% a year earlier, while its veterinary division benefited from strong demand for Care Plans and new sign-ups.
Membership drives growth
At the heart of the strategy is Pets Club, one of the UK’s largest retail membership schemes. The programme now has 7 million active members, providing Pets at Home with a direct relationship with pet owners across its stores, website and services business. Although membership numbers were affected by a previous methodology change, the company said retail transactions still increased by 2% during the quarter.
For Pets at Home, membership is about more than customer loyalty. The retailer uses Pets Club to connect shoppers with personalised offers, advice and services, while encouraging them to engage with a broader range of products and veterinary care. This supports a wider strategy of serving customers throughout a pet’s lifetime rather than relying on individual purchases.
The model appears to be deepening customer engagement. Average consumer value increased by 16.7% year-on-year to £210, reflecting the benefits of customers using multiple products and services across the group.
Broader subscription economy trend
The retailer’s approach also highlights a broader trend within the subscription economy. Rather than building standalone subscription products, many retailers are embedding recurring payments and memberships into everyday customer needs. Pet food deliveries, healthcare plans and preventative care services all lend themselves naturally to ongoing relationships.
As consumers become more selective about the subscriptions they keep, Pets at Home demonstrates the value of offering services tied to essential purchases. Its combination of memberships, healthcare plans and retail services has helped create a business where recurring revenue is playing an increasingly central role in growth.
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