Post by Brooke on Mar 15, 2004 22:47:05 GMT -5
By Frank Tang
NEW YORK (Reuters) - Doggy suites. Kitty cottages. Canine Day Care.
Petsmart and Petco, the Nos. 1 and 2 U.S. pet supply chains, are planning to expand into the pet hospitality industry, taking a bigger bite out of the fragmented business.
Petsmart Inc. , which entered the boarding industry in 2001, will add 14 more "pet hotels" in 2004, Petsmart's Chief Operating Officer Robert Moran said during the company's earnings conference call in early March.
The retailer, which currently operates nine in-store "pet hotels," also has a long-term plan to have a pet hotel in one of every five or six of its 640 stores, it said.
Petsmart's pet hotel offers animal guests an overnight stay in a basic atrium room for about $21 a day, which includes meals and walks. Customers can upgrade to a nicer suite, which provides a television showing animal movies.
With a roomier, comfortable setting and other pet-friendly features like play sessions, the pet hotel concept is more appealing than traditional dog kennels, which are often less luxurious and a bit more rugged.
The Phoenix-based company also operates a "Doggie Day Camp," which costs about $16 a day.
"You can drop your pet off in the morning. Your dog will socialize with other dogs, which is very healthy for the dogs," said David Lenhardt, Petsmart's senior vice president of services, strategic planning and business development.
"They get nap time. They get breaks. And there's always an associate there supervising and playing with them," Lenhardt said.
While demand for doggy day care is very consistent, the pet hotel business is mostly seasonal, Lenhardt said.
According to Petsmart, the company had waiting lists several pages long in several of its pet hotels during the holidays. The average occupancy rate was between 30 percent and 40 percent during the first year.
In the past year, both Petsmart and Petco have posted consistently higher quarterly earnings, boosted by better margins on big-ticket items like pet services -- grooming and training -- and premium products.
"BONE BOOTH"
The pet hotel also features a "Bone Booth," which allows pet owners to call and talk to their pets during the day -- with the assistance of a Petsmart employee.
"We have customers who call daily and talk to their pets," Lenhardt said.
For its feline guests, Petsmart also offers "kitty condos" that come with TLC time - interactive play sessions for cats. The kitty cottage is separately located and has its own air circulation system to minimize stress for both cats and dogs.
On a conference call last week, Petco Animal Supplies Inc. President and Chief Operating Officer Bruce Hall said that it will begin offering doggy day-care services in some of its 654 U.S. stores later this year.
San Diego-based Petco, which ranks behind Petsmart in sales, also said there was a growing consumer demand for pet hospitality services, and it will consider offering an in-store boarding feature as well.
MOM-AND-POP STORES
Pet hospitality is not a new concept. Best Friends Pet Care Inc., a privately owned chain that operates 37 U.S. stores, has been offering boarding services for pets since 1991. But most others are mom-and-pop type stores and small kennels inside some veterinary clinics.
Many pet owners also hire individual pet walkers and pet sitters to help pamper their animal companions.
Jeanine Maier of New Jersey said she prefers using boarding services to a dog walker when she's away and can't take care of Molly, her 1-year-old English Cocker Spaniard.
"I do know somebody who does walk dogs," Maier said, "But there were times when people would get tied up and they couldn't do it. I want her to get used to other places."
Lenhardt said Petsmart's pet hotel tries to minimize pet owners' separation anxiety with their furry friends.
"Pet parents, when they drop off their pets, tend to feel guilty of leaving their pets. That's because you're going to have more fun than your dog is. So we want to make this a fun time for the pets too," Lenhardt said.
Copyright 2004, Reuters News Service
NEW YORK (Reuters) - Doggy suites. Kitty cottages. Canine Day Care.
Petsmart and Petco, the Nos. 1 and 2 U.S. pet supply chains, are planning to expand into the pet hospitality industry, taking a bigger bite out of the fragmented business.
Petsmart Inc. , which entered the boarding industry in 2001, will add 14 more "pet hotels" in 2004, Petsmart's Chief Operating Officer Robert Moran said during the company's earnings conference call in early March.
The retailer, which currently operates nine in-store "pet hotels," also has a long-term plan to have a pet hotel in one of every five or six of its 640 stores, it said.
Petsmart's pet hotel offers animal guests an overnight stay in a basic atrium room for about $21 a day, which includes meals and walks. Customers can upgrade to a nicer suite, which provides a television showing animal movies.
With a roomier, comfortable setting and other pet-friendly features like play sessions, the pet hotel concept is more appealing than traditional dog kennels, which are often less luxurious and a bit more rugged.
The Phoenix-based company also operates a "Doggie Day Camp," which costs about $16 a day.
"You can drop your pet off in the morning. Your dog will socialize with other dogs, which is very healthy for the dogs," said David Lenhardt, Petsmart's senior vice president of services, strategic planning and business development.
"They get nap time. They get breaks. And there's always an associate there supervising and playing with them," Lenhardt said.
While demand for doggy day care is very consistent, the pet hotel business is mostly seasonal, Lenhardt said.
According to Petsmart, the company had waiting lists several pages long in several of its pet hotels during the holidays. The average occupancy rate was between 30 percent and 40 percent during the first year.
In the past year, both Petsmart and Petco have posted consistently higher quarterly earnings, boosted by better margins on big-ticket items like pet services -- grooming and training -- and premium products.
"BONE BOOTH"
The pet hotel also features a "Bone Booth," which allows pet owners to call and talk to their pets during the day -- with the assistance of a Petsmart employee.
"We have customers who call daily and talk to their pets," Lenhardt said.
For its feline guests, Petsmart also offers "kitty condos" that come with TLC time - interactive play sessions for cats. The kitty cottage is separately located and has its own air circulation system to minimize stress for both cats and dogs.
On a conference call last week, Petco Animal Supplies Inc. President and Chief Operating Officer Bruce Hall said that it will begin offering doggy day-care services in some of its 654 U.S. stores later this year.
San Diego-based Petco, which ranks behind Petsmart in sales, also said there was a growing consumer demand for pet hospitality services, and it will consider offering an in-store boarding feature as well.
MOM-AND-POP STORES
Pet hospitality is not a new concept. Best Friends Pet Care Inc., a privately owned chain that operates 37 U.S. stores, has been offering boarding services for pets since 1991. But most others are mom-and-pop type stores and small kennels inside some veterinary clinics.
Many pet owners also hire individual pet walkers and pet sitters to help pamper their animal companions.
Jeanine Maier of New Jersey said she prefers using boarding services to a dog walker when she's away and can't take care of Molly, her 1-year-old English Cocker Spaniard.
"I do know somebody who does walk dogs," Maier said, "But there were times when people would get tied up and they couldn't do it. I want her to get used to other places."
Lenhardt said Petsmart's pet hotel tries to minimize pet owners' separation anxiety with their furry friends.
"Pet parents, when they drop off their pets, tend to feel guilty of leaving their pets. That's because you're going to have more fun than your dog is. So we want to make this a fun time for the pets too," Lenhardt said.
Copyright 2004, Reuters News Service