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How smart is PetSmart?

October 13, 2011 by Annamaria Turano — Executive Director, MCAworks

According to Dow Jones newswire today, PetSmart Inc. raised its third-quarter and full-year guidance, citing better-than-expected same-store sales growth. PetSmart has been reporting steady profit growth for over a year now, lately driven by demand for margin-boosting prescription and "super-premium" pet foods and premium hard goods. "The favorable momentum in our business is the result of our differentiation, which is at the core of our brand and sets us apart from the competition," said President and Chief Executive Bob Moran.

PetSmart is smart because it maintains a clear competitive advantage from both a functional and emotional perspective. Functionally, the retailer is the largest specialty retailer of services and solutions for the lifetime needs of pets. Emotionally, its vision speaks to the trusted care it provides its customers and users ("to provide Total Lifetime Care to every pet, every parent, every time.")

Balancing these 2 benefits drives the product assortment, the merchandising, the in-store grooming and vet services, and the trained, pet-friendly salespeople. Price is not where PetSmart plays; lower prices can easily be found at Walmart, Target, and specialty online retailers. However, PetSmart's focus on trusted care minimizes the importance of price in the minds of pet owners.

About Annamaria Turano

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