Article

Small pet retailer still running with the big dogs

The CEO of a small chain of pet boutiques explains how he competes with big-box competitors.

July 20, 2012

Americans love their pets – so much so that they spend $41 billion every year on their furry family members. That's a lot of doggy beds and catnip and explains why the pet store business is booming. Both PetSmart and Petco have about 1,200 locations and earn hundreds of millions each year. Petsmart reported more than $6 billion in sales for 2011, while Petco ended the year with $2.8 billion.

It makes sense to assume that these big chains have the pet-supply market cornered and that they're pushing out local shops like the big-box book chains once squeezed out neighborhood book shops. One small pet supply store, however, is thriving. Kriser's, an all-natural pet boutique with 12 locations throughout Southern California, Denver and Chicago, has seen 35 percent annual growth since it was founded five years ago and 20 percent same-store sales growth in 2011.

The success, said CEO Brad Kriser, stems from the retailer's focus on maintaining customer loyalty and upholding the brand's personalized, welcoming store environment. He also hires passionate and knowledgeable staff members and specializes in all-natural products, which allows the store to serve a niche market.

Kriser recently gave Retail Customer Experience an inside look at the store's success.

RCE: What makes the customer experience at Kriser's better than big chain pet stores?
Kriser: We believe in having a high-touch environment and investing in the look and feel of the store's layout. The store walls are enhanced with images and quotes that capture the spirit and philosophy behind Kriser's and the healthy pet movement such as: "All of our foods are personally approved by me. And yes, I've tried them all. – Brad Kriser" and "Pet Food that's good enough to eat. Not that you would. But you could. Just so you know. – Brad Kriser"

The boutique-sized stores are intimate and welcoming vs. large and intimidating, allowing store staff to easily assist customers. Pet grooming facilities at each location have clear windows, so that customers can see the dogs being groomed and dried, which creates a sense of trust among pet owners. We have chrome freezers with glass that give a nice look and feel and allow customers to see inside. Many pet stores have freezers that you can't see in unless you open the door. Our stores also feature sample bins that allow customers to take small bags of food, complimentary, to test out on their pet

RCE: How do you inspire customers to stay loyal?
Kriser: Loyalty is all about providing the best experience and educating customers. Consistent team member education helps to differentiate the brand and solidify Kriser's employees as experts in the healthy pet movement in their communities.

If you take a look at Kriser's Yelp reviews (Studio City, Calif. Store for example) you will see that customers routinely speak positively about how employees were able to educate them on how to help their pets live healthier lives through increasing their awareness about natural pet foods, toys that keep their pets' minds sharp, exercise tips, information on important supplements, pet dental care, grooming and more.

We also build customer trust through strategies, such as using glass windows for grooming facilities, which allows pet parents to view their pets while being groomed. There's also my stamp of approval on all food bags carried in the store.

RCE: Can you compete on price with larger chain pet stores, or are your prices higher? If so, why do your customers still choose Kriser's?
Kriser: We don't overlap with most of the food selections offered by big-box retailers, but when they do, they're at either the same price or less expensive.

RCE:How have you been able to grow the business while maintaining your focus on customer service?
Kriser: We are very careful to maintain our culture for both team members and customers. We continue to educate team members with vendor trainings and reach out to the local community about local events such as pet adoptions.

In addition, we have developed a niche by featuring only all-natural products hand-selected by me. Choosing to focus on this niche of all-natural pet food and supplies has helped us differentiate from the competition and stand out from other mass appeal pet stores.

We also have a targeted expansion plan and have focused store expansion strategy on finding areas where there is an unmet need for natural pet stores and where the brand will be able to differentiate itself from nearby stores. Our focus is on finding locations where there is a strong interest in pet nutrition, where the largest dogs in the country by weight live, and communities that embrace the outdoors and pet culture.

We believe that helping local communities and taking a leadership role in the proper care and safety of pets is a priority for the business. Each Kriser's store has a chalkboard listing upcoming community events, and we are routinely interviewed as a pet lifestyle expert with local newspapers and broadcast stations in each community where our stores are located.