BELOVED DOG company file Canada and its comparison in US AND CANADA COUNTRY need the below information to be written 1.5 page Introduction ( about Canada country ) Company Backg

23 Camp Bow Wow 23 Aussie Pet Mobile International Company 25 Operating Conditions 25 Capital Intensity 26 Technology and Systems 26 Revenue Volatility 27 Regulation and Policy 27 Industry Assistance 28 Key Statistics 28 Industry Data 28 Annual Change 28 Key Ratios 29 Industry Financial Ratios 30 Jargon & Glossary www.ibisworld.com | 1-800 -330 -3772 | info @ ibisworld.com Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 2 This industry primarily provides pet care services such as boarding, grooming and training. This industry includes animal shelters, obedience training services, guard dog training services, pet boarding and animal grooming services. This industry does not include establishments that predominantly retail products, board horses, transport pets nor those that practice veterinary medicine. The primary activities of this industry are Animal grooming Operating animal shelters Boarding pets Operating dog pounds Guard dog training Obedience training Pet sitting Pet training 11521 Livestock Production Support Services in the US This industry includes operators that raise livestock.

44511 Supermarkets & Grocery Stores in the US Retailers in this industry frequently sell pet merchandise and food.

45391 Pet Stores in the US This industry includes stores that sell pet merchandise and food.

54194 Veterinary Services in the US This industry comprises veterinary hospitals and clinics. Industry Definition Main Activities Similar Industries About this Industry The major products and services in this industry are Pet boarding Pet grooming Pet sitting and dog walking Pet training Other Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 3 Additional Resources For additional information on this industry www.americanhumane.org American Humane Association www.americanpetproducts.org American Pet Products Association www.nationalcatgroomers.com National Cat Groomers Institute of America www.nationaldoggroomers.com National Dog Groomers Association of America IBISWorld writes over 1000 US industry reports, which are updated up to four times a year. To see all reports, go to www.ibisworld.com About this Industry Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 4 Million 220 160 170 180 190 200 210 23 911 1315171921 Year Number of pets (\fats and dogs) SOURCE: WWW.\fB\fSWORL\.D.CO\b \bR\f437L9 12 0 2 4 6 8 10 24 10 121416182022 Year Revenue Employment Revenue vs. employ\(ment growth Products and services se\.gmentation (2018) 39.\f%Pet boarding 29.\b%Pet grooming 15.4%Other 7.7% Pet sitting and dog\. walking 7.5%Pet training SOURCE: WWW.IBISWORL\f.COM Key Statistics Snapshot Industry at a Glance Pet Grooming & Boarding in 2018 Industry Structure Life Cycle Stage Growth Revenue Volatility Low Capital Intensity Low Industry Assistance None Concentration Level Low Regulation Level Light Technology Change Low Barriers to Entry Low Industry Globalization Low Competition Level High Revenue $8.2bn Profit $967.1m Wages $3.2bn Businesses 115,691 Annual Growth 18–23 1.3% Annual Growth 13–18 6.8% Key External Drivers Number of pets (cats and dogs) Per capita disposable income Number of households Demand from pet stores National unemployment rate Market Share There are no major players in this industry p. 23 p. 5 FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 28 SOURCE: WWW.IBISWORLD.COM Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 5 Key External Drivers Number of pets (cats and dogs) Demand for industry services is expected to heighten as the number of pet owners rises. Pet ownership has been on the rise, which is one of the main reasons for this industry’s growth. The number of pets is expected to increase in 2018, representing a potential opportunity for the industry.

Per capita disposable income The industry has proven to be somewhat immune to downturns in the economy, with rising per capita disposable income bolstering industry revenue. Although consumers decreased spending on the majority of their own goods and services during the recession, fewer consumers cut back on pet service expenses, such as boarding, training and grooming.

However, when disposable income rises, consumers are likely to purchase an even greater number of luxury services for their pets. Per capita disposable income is expected to rise in 2018. Executive Summary The Pet Grooming and Boarding industry has nearly doubled over the past decade.

Demand for pet grooming, boarding, training and walking is at an all-time high due to rising pet ownership, improved disposable income and changing consumer preferences regarding pet care. Over the five years to 2018, revenue is anticipated to grow at an annualized rate of 6.8% to $8.2 billion, reflecting a rise in consumer spending toward price-premium pet services.

Revenue has posted consistent gains and is continuing to outpace the overall economy, with an increase of 1.7% in 2018 alone. Pet parents have been purchasing a greater range of high-value services for their pets, contributing to industry revenue growth. Furthermore, industry operators have expanded their services to capture additional revenue. Pet groomers are increasingly providing luxuries like pet cologne. Pet boarders have also introduced deluxe hotel suites equipped with TVs, webcams for owners and training services, among other amenities.

Operators have also increasingly focused on advertising animal safety at their boarding facilities by promoting special skills such as animal CPR. The premium pricing for these lavish services has improved industry revenue over the past five years. However, rising operating costs have hampered potential profit gains. Consequently, profit margins have been stagnant over the past five years. The outlook remains bright for the Pet Grooming and Boarding industry. Over the five years to 2023, industry revenue is forecast to grow at an annualized rate of 1.3% to $8.7 billion. Rising pet ownership will increase demand for services and per capita income will enable more owners to be able to afford luxury services. However, industry competition is expected to intensify as the number of nonemployers that offer pet-sitting services increases.

New websites, such as DogVacay.com, provide online reviews for pet sitters and has made it easier for smaller operators to establish themselves. Consequently, the number of industry operators is expected to further rise over the five years to 2023.

Additionally, because pet sitters often host animals in their own homes or visit the pet’s home, these operators may have a lower cost structure than traditional pet boarding facilities. Consequently, traditional operators will focus on providing more luxury services in the future to differentiate themselves. Industry Performance Executive Summary | Key External Drivers | Current Performance Industry Outlook | Life Cycle Stage Pet owners have been purchasing a greater range of high-value services for their pets Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 6 Key External Drivers continued Number of households Pet ownership and demand for industry services tend to coincide with household formation. As the number of households increases, pet ownership rates rise, heightening demand for pet boarding, training and grooming. As rising income levels increase the number of individuals living alone, the number of households is expected to increase in 2018.

Demand from pet stores Demand from the Pet Stores industry (IBISWorld report 45391) represents the total revenue generated by pet stores. In addition to selling pets and pet-related items, some pet stores also offer industry- relevant services such as grooming and training. However, revenue generated for industry-relevant services by pet stores is not included in the Pet Grooming and Boarding industry. Consequently, rising pet store revenue takes away revenue from industry-relevant companies. In 2018, revenue for pet stores is expected to increase, representing a potential threat to the industry.

National unemployment rate As more Americans return to work, these individuals will have less time to care for their pets. Therefore, a decrease in unemployment will increase demand for pet grooming and boarding services. The national unemployment rate is expected to decline in 2018.

% change 4 -4 -2 0 2 23 11 1315171921 Year Per capita disposa\lble inco\fe SOURCE: WWW.\fB\fSWORL\.D.CO\b Million 220 160 170 180 190 200 210 23 9 11 1315171921 Year Nu\fber o\b pets (cats\l and dogs) Industry Performance Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 7 Current Performance The Pet Grooming and Boarding industry has proven to be one of the few established industries to post consistently strong gains over the past decade. It nearly doubled in size and grew even amid the recession as consumers purchased a wider array of luxury services for their animal companions. The industry offers a variety of pet services, including grooming, boarding and training. Accelerated by economic recovery, IBISWorld expects industry revenue to increase at an annualized rate of 6.8% to $8.2 billion over the five years to 2018, with the industry rising 1.7% in 2018 alone. Changing consumer attitudes toward pets has driven growth through much of the period, as an increasing number of pet owners now treat their pets like family members. This humanization of pets has led to increased demand for luxury services as owners want their pets to have the best products and services that money can buy. % change 120 2 4 6 8 10 24 10 121416182022 Year Industry revenue SOURCE: WWW.IBISWO\LRL\f.COM Growing pet ownership Increased pet ownership benefits the industry in many ways. More pets translates to more pet services used, as owners will inevitably require pet boarding, grooming or other services. In particular, new pets will boost demand for pet training, as owners seek to build healthy bonds and habits with their animals. During the five-year period, pet ownership has been on the rise.

According to the 2016-17 National Pet Owners Survey, published by the American Pet Products Association, 68.0% of US households (about 84.6 million homes) own a pet. This figure represents an increase from 56.0% of households in 1988. In addition, according to IBISWorld estimates, the number of cats and dogs in the United States is anticipated to grow at an annualized rate of 0.9% over the five years to 2018, totaling an estimated 186.9 million animals in 2018. With increasing pet ownership, demand for boarding, sitting, grooming and training services has experienced strong growth. Changing consumer attitudes According to the US Pet Ownership and Demographic Sourcebook, more than 60.0% of pet owners consider their pets as family members. During the five-year period, the trend of owners viewing their pets as family members has increased and greatly benefited industry operators.

Some owners have even been referred to as a pet parent. Pet parents are enthusiasts who treat their pets like a child, which further shows the acceptance of pets as a member of the family. This gradual shift in consumer attitudes and the humanization of pets has resulted in strong demand for luxury goods and services for pets. In response to changing consumer attitudes, the industry began offering a greater array of luxury services for pets.

The rise of pet boarding facilities, as well Industry Performance Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 8 as day camps, highlights this trend. Some pet boarders offer dog suites and cat condos equipped with TV sets tuned to animal shows, lamb’s wool bedding and extra playtime. Additionally, many boarders also offer new services such as grooming, training and retail items for sale. Owners also want to know that their pets are in good hands when they are away. Therefore, many operators advertise on the basis of safety and note any special skills or training that employees have, such as animal CPR. Another popular service pet boarders now offer is letting owners to see their pets via webcam while the owners are away. Webcams provide owners the ability to check in on their pets from anywhere, just like many parents check in on their children when they are left with a babysitter. In addition to providing increased revenue, the wide array of services that operators offer help businesses stand out in an increasingly competitive market. Changing consumer attitudes continued Industry structure In response to robust consumer demand for boarding, training and grooming services, the number of industry operators has grown significantly. Over the five years to 2018, IBISWorld anticipates the number of industry operators to rise at an annualized rate of 5.1% to 115,691 companies. Low barriers to entry enable easy entrance for new players and pushes up competition. Industry employment has also been on the rise, falling in line with enterprise growth due to the high level of labor required for industry services. Most pet grooming is done by hand.

Additionally, owners can purchase one-on-one training sessions or individual play sessions for their pets. Over the five years to 2018, industry employment is expected to grow at an annualized rate of 6.7% to 211,288 people. Wage growth also grew significantly, leading to a rise in the average industry wage as companies seek to attract skilled workers. Despite rising demand for luxury services, the average industry profit margin has remained stagnant over the five years to 2018. Due to intense competition in the industry, marketing costs have risen as companies try to stand out from competitors.

Additionally, depreciation and purchase costs have also increased during the five-year period due to operators’ need to provide more luxury products and services.

Consequently, rising costs hindered potential gains from the increased demand for luxury services.

Low barriers to entry enable easy entrance for new players and pushes up competition Industry Performance Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 9 Industry landscape The term pet parent describes enthusiastic pet owners that view pets as members of the family. These pet parents are more likely to purchase more high- value services and products, supporting revenue growth for the industry.

Changing consumer attitudes have boosted demand for pet hotels that offer luxury accommodations and services from groomers and trainers. Demand for services is forecast to rise further over the next five years, fueling revenue and profit growth. Due to growing demand, the number of companies operating in the industry is projected to rapidly expand. Over the five years to 2023, IBISWorld expects the number of industry operators to rise at an annualized rate of 3.5% to 137,632 enterprises. Given the industry’s labor- intensive nature, industry employment will increase at an annualized rate of 2.7% to 241,310 people. Owners who want to provide more individual services for their pets, such as training and playtime at pet boarding centers, will help drive employment growth during the five-year period. Industry Outlook The Pet Grooming and Boarding industry’s strong performance is expected to continue over the five years to 2023, rising at an annualized rate of 1.3% to $8.7 billion. The growing industry has benefited from changing consumer attitudes, which increases demand for a variety of new luxury pet services. Over the next five years, this trend is expected to gain further momentum as pet ownership rises and owners spend their increasing disposable income on services for their pets. Over the five years to 2023, rising per capita disposable income and increased pet ownership will largely drive sales growth. Per capita disposable income growth is expected to increase at an annualized rate of 1.9% during the five-year period. Increased per capita disposable income is expected to boost industry sales, as consumers will be able to splurge on higher-value services and a greater number of services. Increased pet ownership in the United States will also benefit the industry. The number of pet cats and dogs in the United States is projected to reach 210.6 million in 2023.

The number of companies operating in the industry is projected to rapidly expand Increasing competition Operators experience strong external and internal competition for their services.

Barriers to entry and governmental regulations are expected to remain low, enabling easy entrance for new competitors. In addition, nonemployers offering pet services from the home are expected to increasingly contend with traditional pet boarding facilities.

Individuals that offer pet services from their homes are often referred to as pet sitters. While pet owners originally chose professional pet boarding services to ensure safety and reputability, sites like DogVacay, which launched in 2012, have alleviated many of these concerns.

DogVacay connects pet sitters with owners and helps ensure sitters’ reliability through interviews, background checks and online reviews from owners who have used the pet sitter.

Growing consumer acceptance of at- home pet boarding services has encouraged people who work from home Industry Performance Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 10 to host pets in their house as a source of side income. Sitters can also visit animals at their own homes, so pet sitters are ideal for animals that do not like to travel to boarding facilities. Since these operators do not need to purchase separate facilities, their costs are considerably lower than traditional pet boarding facilities. This trend is expected to add pressure to traditional facilities over the next five years, with many opting to expand their luxury services to differentiate themselves from increasing competition. Industry operators also experience external competition from retail stores that offer pet grooming and training services. These stores include Walmart, which began testing pet grooming services during the recession, and pet stores such as PetSmart. In 2016, PetSmart announced that it would be opening 80 new stores, up from 50 new stores in 2015.

In addition to offering pet supplies, stores also include grooming and training services. Large retailers such as PetSmart already have a strong connection with owners because owners purchase pet supplies from the stores. Therefore, as these retailers expand their number of stores that offer grooming and training services, it could take demand away from industry operators and hinder revenue. Increasing competition continued Industry Performance Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 11 Increasing pet ownership, particularly dogs and cats, is leading to strong industry revenue growth Changing consumer attitudes have spurred consumer spending on luxury pet services The industry is growing faster than the overall economy Life Cycle Stage Industry Performance Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 12 Industry Life Cycle The Pet Grooming and Boarding industry is in the growing phase of its industry life cycle. Indicators of this life cycle stage include a rising number of industry operators, establishments and employment. Additionally, industry operators have introduced a wide array of luxury services for pets over the past five years, driving industry growth and improving the average industry profit margin. Industry value added (IVA), which is a measure of the industry’s contribution to the economy, has continuously outpaced overall GDP during the 10-year period. Over the 10 years to 2023, IVA is expected to rise at an annualized rate of 3.9%. GDP is projected to increase at an annualized rate of 2.2% during the same period. Over the past two decades, US pet ownership rates have been increasing. For example, in 1988, 56.0% of US households owned a pet. Comparatively, according to the 2016-17 National Pet Owners Survey, 68.0% of US households owned at least one pet. The rising number of pets over the past 10 years has increased demand for industry services. In addition, industry growth has been stimulated by consumers’ changing attitudes toward their pets. US pets are increasingly given luxury goods and services, with owners purchasing massages and luxury suites for their pets. Over the past decade, the term pet parent has cropped up to describe pet owners who treat their pets as members of their family. As a result of changing consumer attitudes toward their pets, the industry has experienced remarkable growth. In response to changing consumer attitudes, industry operators who own pet-boarding facilities have introduced a greater number of services for pets, including TV sets tuned to animal shows and lamb’s wool bedding. Additionally, many pet hotels now have web cameras installed so that owners can see their pet through the company’s website. As a result of these increased services, many pet hotels now have tiered accommodations so pet owners can choose between basic rooms and elaborate luxury suites for their pets.

The increase in luxury services has boosted the average industry profit margin over the 10 years to 2023. As revenue and profit rose over the period, this has attracted new operators. Consequently, the number of industry enterprises is anticipated to increase at an annualized rate of 4.3% over the 10 years to 2023. This industry is Growing Industry Performance Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 13 Products & Services Pet ownership has been on the rise in the United States, increasing demand for grooming, boarding, training and other services. Moreover, demand for these services proved to be recession-proof, with industry revenue rising consistently over the past decade, despite the economic downturn.

Pet boarding, sitting and dog walking Pet boarding is expected to account for 39.8% of industry revenue in 2018, while sitting and dog walking generates 7.7%.

Pet sitting is an alternative to pet boarding and often entails having someone take care of a pet in the home of the owner or sitter. Dog walking is a form of taking care of dogs while owners are away. Often, walkers may take dogs to a park where they can socialize with other dogs. Pet boarding entails providing overnight care for animals, including accommodation, food and exercise.

Although standard kennels are still common, a variety of luxury pet boarding establishments offering tiered accommodations have appeared.

Additionally, some companies offer TVs that play pet-themed shows, wading pools and daily play sessions.

Furthermore, some pet boarders install cameras in luxury suites so that owners can check in on their pet while they are away. Due to the rise of luxury services, Products & Markets Supply Chain | Products & Services | Demand Determinants Major Markets | International Trade | Business Locations KEY BUYING INDUSTRIES 9901 Consumers in the US Households with pets are the main source of demand for this industry. KEY SELLING INDUSTRIES 31111 Animal Food Production in the US This industry supplies animal feed for pets. 32561 Soap & Cleaning Compound Manufacturing in the US Operators in this industry supply shampoos and other cleaners for pets. 33993 Toy, Doll & Game Manufacturing in the US This industry manufactures pet toys. Supply Chain Products and services se\$gmentation (2018) Total $\f.2bn \b9.\f%Pet boarding 29.6%Pet grooming 15.4%Other 7.7% Pet sitting and dog\$ walking 7.5%Pet training SOURCE: WWW.IBISWORL\f.COM Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 14 Demand Determinants Demand for pet grooming, training and boarding services is determined by the number of pet owners, household income and pet expenditures, demographics and the time of year. Pet ownership is the primary determinant of demand; when pet ownership rises, demand for additional care services for pets is expected to increase as well. Pet ownership has been on the rise over the past twelve years. In 1988, 56.0% of US households owned a pet. Comparatively, according to the American Pet Products Association 2015-16 National Pet Owners Survey, about 65.0% of households own a pet. The main pets that are owned by Americans are dogs, cats, freshwater fish and birds. Demand is also related to income, pet expenditure and whether or not a person has children. Consumers and households with higher incomes are able to spend more on discretionary services and have been the primary customers for luxury pet services. While households with children are more likely to own a pet, they are also less likely to spend on their pets. According to the Bureau of Labor Statists, households with just two spouses spend an average of $698.00 per year on their pets. Conversely, households with two spouses and a child under the age of 6 will spend $412.00, while single parents with children under the age of 18 spend just $267.00 per year.

Household spending on pets influences Products & Services continued demand for the pet boarding, sitting and dog walking category has expanded over the past five years.

Pet grooming Pet grooming is expected to account for an estimated 29.6% of industry revenue.

Animal grooming includes cutting and shaving hair, trimming nails and cleaning hair, ears and teeth. Additionally, pet groomers have begun offering a greater variety of luxury services, including massages, flea and tick removal and undercoat removal to decrease shedding.

Some pet groomers also provide mobile services so that groomers can come to the pet’s home to perform the grooming. This mainly appeals to households that own elderly or nervous pets. However, the animal-grooming segment has declined as a share of revenue due to heightened competition from pet-store groomers and rapid rises in revenue from pet boarding and sitting.

Pet training Pet training covers general obedience classes for puppies, as well as group and private lessons for more advanced dogs. Pet training also includes lessons for guard and guide dogs and training animals to race. Pet training has begun to be offered in conjunction with other services such as pet boarding and day care services. Despite rising revenue, high competition from external competitors and significant increases in revenue for pet boarding and sitting services have caused this segment to decrease as a percentage of industry revenue. In 2018, pet training is expected to account for 7.5% of industry revenue.

Other pet care services Other pet care services provided by the industry include a variety of services such as pet funeral services.

Additionally, industry operators will typically sell pet-related merchandise to pet owners at their operating establishment. This includes animal treats, collars, leashes, pet clothing, shampoos, food and other products.

IBISWorld expects this segment to generate 15.4% of revenue in 2018.

Products & Markets Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 15 Major Markets People aged 30 to 49 Pet owners aged 30 to 49 generate the most industry revenue. In 2018, this IBISWorld expects 40.0% of revenue to come from this segment. People in this age group have the highest percentage of pet ownership. According to Pew Research Center, 64.0% of people in this age group own a pet. Due to the age of people in this group, many are likely to have families and children, which boosts the percentage of pet ownership.

Additionally, this age group has one of the highest annual expenditures for their pets ($495.50). Consumers in this age group are also likely to travel either for family vacations or work. Therefore, this segment is likely to use boarding and pet sitting services. Owners in this segment are often busy with work and family, making the more likely to use grooming or training services. The segment’s high annual expenditure on pets also increases the change for the segment to purchase luxury services. However, this segment has decreased slightly as a percentage of revenue due to high growth from people aged 50 and over.

People aged 50 to 64 People aged 50 to 64 are the second- largest market for industry operators. In 2018, this segment will generate 33.5% of revenue. Consumers in this age group have one of the highest percentages of pet ownership. According to Pew Research Center, 57.0% of people in this age group own a pet. Pet ownership is popular with this segment because pets provide great companions. In addition to having a high Demand Determinants continued industry revenue because the more a household spends on its pets, the more likely it is to use industry services and premium services. For pet boarding services specifically, demand generally relates to several factors.

These include households taking holidays or traveling for business; relocation of households; households having guests who do not like pets or are allergic to animals; illness of the owner which hinder proper pet care; and home renovation or fumigation. There is also seasonal influence on demand for grooming services as industry operators typically experience greater demand for grooming services during the warmer months, particularly for coat clipping and bathing. Major market segmentation (2018) Total $8.\fbn 40.0\b People aged 30 to 49\. 33.5\b People aged 50 to 64\. 15.6\b People aged 18 to \f9 10.9\b People aged 65 and \.over SOURCE: WWW.IBISWORL\f.COM Products & Markets Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 16 International Trade The Pet Grooming and Boarding industry is a service industry and only provides domestic services for pets located within the United States. As a result, there is no international trade within this industry. Major Markets continued percentage of pet ownership, this age group spends the most on their pets per year, with an estimated annual expenditure of $632.30. High pet ownership, in conjunction with high spending on pets, boosts this segment’s demand for industry services such as training, grooming and boarding. Also, since owners in this segment spend a large amount on their pets, they are more likely to use luxury services than any other age group. Over the five years to 2018, IBISWorld estimates revenue from this segment to increase due to rising population.

People aged 18 to 29 IBISWorld estimates that pet owners in this segment account for 15.6% of total industry revenue. While consumers in this segment are extremely likely to own a pet, they spend the least amount of money on their pets ($340.70), compared with other age groups. Since many people in this segment are just starting out in life, they may not have high of disposable incomes like other segments. Therefore, owners in this segment are less likely to use luxury services; to save money, they are more likely to do grooming and training themselves.

People aged 65 and over Pet owners in this age group account for an estimated 10.9% of revenue. While this segment typically spends a high amount on their pets ($416.50), they are least likely to own a pet. Although pets can make great companions, especially if a person lives alone, they are often tiring and require a lot of attention. Therefore, people in this age group may not want to own a pet. Since people in this age group have low levels of pet ownership, they demand fewer industry services than other age groups. Consequently, this segment accounts for a small percentage of revenue. However, revenue from this segment has been on the rise as the number of people aged 65 and over increase, increasing the number of pet owners in this segment.

Products & Markets Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 17 Business Locations 2018 MO2.2 VT0.4 MA3.0 RI0.5 NJ3.1 DE0.3 NH0.7 CT1.4 MD1.9 DC0.2 1 53 7 2 6 4 8 9 Additional States (as marked on map) AZ1.9 CA10.3 NV0.9 OR1.8 WA3.3 MT0.5 NE0.6 MN1.9 IA1.0 OH3.4 VA3.0 FL6.8 KS0.8 CO3.0 UT0.8 ID0.5 TX6.7 OK1.0 NC3.5 AK0.3 WY0.2 TN1.6 KY1.0 GA2.7 IL4.7 ME0.7 ND0.2 WI2.4 MI2.7 PA4.3 WV0.4 SD0.3 NM0.7 AR0.6 MS0.4 AL0.9 SC1.7 LA0.7 HI0.2 IN1.9 NY6.0 5 6 7 8 3 2 1 4 9 SOURCE: WWW.IBISWORLD.COM Establishments (%) Less than 3% 3% to less than 10% 10% to less than 20% 20% or more Products & Markets West West West Rocky Mountains Plains Southwest Southeast New England Mid- Atlantic Great Lakes Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 18 Business Locations Industry location is based mainly on the population, median household income level and population. Regions with higher populations provide access to a greater number of pet owners. Additionally, regions with higher median income levels also have more establishments. Since the industry supplies a variety of luxury services for pets, establishments are disproportionately located in higher- income areas.

Southeast The Southeast holds the highest number of industry establishments with an estimated 23.4%. The Southeast is the most populated region of the United States with a quarter of the nation’s population, which provides access to many pet owners.

Within the Southeast, Florida has the highest proportion of industry establishments, estimated at 6.8%.

West The West has the second-highest proportion of industry establishments, with an estimated 16.7%. It also has the second-highest median income level out of any region. High population enables industry operators to gain access to many pet owners. In the West, California houses the highest percentage of establishments with 10.3%. According to the US Census Bureau, California has one of the highest medium income per household in the United States. California is also where large companies, such as Aussie Pet Mobile International Company, have their corporate headquarters.

Mid-Atlantic The Mid-Atlantic region comprises 15.7% of the industry’s establishments. New York alone houses 5.9% of industry establishments. The region has one of the highest populations in the country due to its large metropolitan centers such as New York City. The region’s high median income level also boosts demand for industry services, especially luxury services. Additionally, pet owners that live in areas like New York City may find it difficult to exercise their dogs due to the lack of open space. Therefore, city residents are more likely to use dog exercise services. Additionally, the busy lifestyle of people in large cities may make it difficult for owners to find time to walk their dogs. Therefore, people who live in large cities maybe more likely to use dog walking services.

Great Lakes The Great Lakes is the fourth-most popular region for industry establishments, with 15.0%. Illinois is the fifth-most populated state in the nation and comprises an estimated 4.7% of total industry establishments. It also has a high median household income of $60,413.

Others Other small participating regions in the industry include the Southwest (10.2%), Plains (7.1%), New England (6.8%) and the Rocky Mountains (5.1%). These regions have a smaller consumer market, which reduces demand for pet services. % 300 10 20 Southwest West Great Lakes \fid-\btlantic New England Plains Rocky \fountains Southeast Establishments Population Distribution o\f esta\ blishments vs. popul\ ation SOURCE: WWW.IBISWORL\kD.CO\f Products & Markets Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 19 Cost Structure Benchmarks Profit Profit, as measured by earnings before interest and taxes, is expected to account for 11.8% of industry revenue in 2018. The average industry profit margin has decreased over the past five years, despite rising demand for luxury services as consumers choose to indulge their pets.

Rising purchase, depreciation and marketing costs have all hindered potential profit gains and led to a decrease in the average industry profit margin.

Wages Similar to all personal services industries, there is a relatively high level of direct labor input in this industry. Therefore, wages are the largest expense for industry operators. In 2018, wages are expected to account for 39.4% of revenue. For kennel operators, there is a high level of labor input for pet handling, feeding, exercising and cleaning kennels. There is also a high level of labor input for training, which may require one on one time with a trainer.

Purchases Payment for supplies, such as shampoos, pet food, drugs and related items can vary depending on the size and type of operator.

However, most industry players operate on a small scale and do not benefit from wholesale prices. Overall, purchases are estimated to account for 11.6% of revenue and have risen over period as operators focus on providing more luxury services. Key Success Factors Proximity to key markets Being located near households with high pet ownership levels, particularly dogs and cats, will benefit industry players by ensuring consistent demand for services.

Effective quality control High quality grooming and other pet care services ensure repeat visits by customers and word of mouth recommendations.

Access to multi-skilled and flexible workforce Access to appropriately trained and flexible staff who can perform a variety of tasks and services (e.g. grooming, kennel and support staff ) lowers labor costs and increases industry expertise and value.

Compliance with government regulations Meeting all ongoing government business licensing and pet and animal regulations is a basic requirement for industry players.

Word of mouth recommendations Businesses that maximize customer satisfaction are more likely to gain favorable word of mouth recommendations, which are important for gaining new customers. Market Share Concentration The Pet Grooming and Boarding industry is highly fragmented and exhibits a low level of market share concentration. IBISWorld estimates that no single company accounts for 5.0% or more of total revenue. Low barriers to entry make it easy for new players to enter the industry, increasing competition and making it difficult for operators to capture a significant share of the market. Additionally, the majority of operators in this industry are small operators, with 95.5% of enterprises having less than 20 employees. The small scale of operators makes it difficult to capture a majority of the market, even though some companies have multiple locations. Competitive Landscape Market Share Concentration | Key Success Factors | Cost Structure Benchmarks Basis of Competition | Barriers to Entry | Industry Globalization Level Concentration in this industry is Low IBISWorld identifies 250 Key Success Factors for a business. The most important for this industry are: Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 20 Basis of Competition Internal competition Industry competition is high due to the industry’s large number of nonemployers and low barriers to entry. Based on US Census data, IBISWorld estimates that while nonemployers account for less than half of industry revenue, there are an estimated five nonemployer enterprises for every one enterprise with employees. Furthermore, the number of companies has been continually growing over the period, increasing the level of internal competition. Competition with other industry groomers, trainers and boarders is mainly based on location, price, quality of service, safety and customer loyalty.

Industry operators hold a significant competitive advantage if their establishment is in a highly visible location with easy access for customers Cost Structure Benchmarks continued Other Marketing expenses, reflected through advertising and promotional costs, have risen over the past five years to reach 2.0% of industry revenue due to increased competition within the industry. Meanwhile, depreciation is estimated to be 3.1%.

Depreciation costs have risen over the five-year period as operators offer more luxury services, like TVs for pets to watch while away from their homes and webcams for owners to check in on their pets. Rent and utilities have also increased, accounting for 10.8% in 2018, given that dog-boarding facilities require more space and round-the- clock heating. Other expenses, such as accounting and administrative fees, account for the remaining 21.3% of revenue. Sector vs. Industry Costs n P r o fi t n Wages n Purchases n Depreciation n Marketing n Rent & Utilities n Other Average Costs of all Industries in sector (2018) Industry Costs (2018) 0 20 40 60 Percentage of revenue 80 10 0 SOURCE: WWW.IBISWORLD.COM 9.1 11.8 21.3 10.8 2.0 3.1 11.6 39.4 25.3 7.8 1.4 3.4 21.7 30.5 Level & Trend Competition in this industry is High and the trend is Increasing Competitive Landscape Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 21 Barriers to Entry Barriers to entry for the Pet Grooming and Boarding industry are low since there are no formal industry licensing or training requirements. In addition, the cost of establishing an at-home or mobile service is relatively low. Some training is, however, recommended for becoming an animal groomer. Classes are available, but most groomers learn through apprenticeships and on-the-job training.

There are over 340 dog breeds alone that are recognized by the Federation Cynologique Internationale, which is the largest canine organization in the world.

Different breeds of dogs may require specialized grooming procedures according to owners’ needs and the particular breed. Moreover, this industry is in the growth stage of its economic life cycle. Therefore, companies are still entering the industry due to rising demand from pet owners for a greater array of luxury services for their pets. The level of competition is high and increasing within the industry as there are a significant number of small companies.

High industry competition could be a potential barrier to entry because it makes it difficult for new operators to establish a client base. Basis of Competition continued and pets. This increases the convenience for customers. Price is another significant source of competition. Although the price of pet care services has been rising as consumers increasingly purchase more luxury services, an establishment’s ability to offer a wide range of services at lower prices will give the company an edge over others. Specific skills and knowledge of operators are also important. Companies with employees that have a high degree of knowledge of various animals and breeds are likely to have a competitive advantage. Additionally, due to the strong bond that often exists between pets and pet owners, owners want to know that their friends are in good hands. Therefore, a company with a reputation for safe care is likely to attract more businesses. For boarding kennels, competition is typically related to the general appearance of the establishment (clean and hygienic), security to prevent the escape of pets from cages, safety with no sharp objects in or near cages and solid dividers between cages to prevent intrusions by other animals. The availability of exercise areas is also important, along with supervision, specialized food (e.g. food types/brands) and access to veterinary and other requested services, such as grooming.

Luxury pet hotels with high-end suites and services like massages are becoming increasingly popular as a growing number of pet owners treat their pets as family members.

External competition External competition includes grooming services and training services at stores such as PetSmart in addition to some veterinary hospitals and clinics that offer pet grooming and boarding services in conjunction with medical treatments and services. The industry also experiences external competition from the sale of at-home grooming products from retailers. Level & Trend Barriers to Entry in this industry are Low and Increasing Barriers to Entry checklist Competition High Concentration Low Life Cycle Stage Growth Capital Intensity Low Technology Change Low Regulation & Policy Light Industry Assistance None SOURCE: WWW.IBISWORLD.COM Competitive Landscape Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 22 Industry Globalization The Pet Grooming and Boarding industry has a low level of globalization. Since the industry is service-based, there is no international trade. Furthermore, the majority of companies are domestic- based. While industry operator Aussie Pet Mobile was originally located in Australia, the company has since transferred its corporate headquarters to the United States. Aussie Pet Mobile and some other mobile pet-grooming companies have international franchise systems that expose the industry to a low level of globalization. Barriers to Entry continued Groomers and pet trainers may not need a physical establishment and can instead go to consumers’ homes. However, industry operators planning to expand services will need to secure an operational facility. Pet boarders will also need supplies such as pet food, bedding, leashes, collars, medicines and toys. Additionally, pet-grooming establishments must purchase shampoos, brushes and hoses. Labor is another important requirement for entering the industry. Although the number and type of employee varies depending on the type of operation, typical employees include beginning and experienced kennel attendants, groomers and trainers. Finding well-trained, certified and attentive employees could be a potential barrier to entry for operators due to the high amount of competition in the industry. Level & Trend Globalization in this industry is Low and the trend is Steady Competitive Landscape Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 23 Other Company Performance Best Friends Pet Care Inc. (Best Friends) is one of the leading boarding and grooming providers in the United States.

The company was founded in 1991 and is headquartered in Kent, WA. With the majority of the company’s locations on the East Coast, Best Friends operates 52 centers in 20 states. The company offers luxury pet boarding services and each suite is complete with lamb’s wool bedding. Customers also have the option of purchasing training services and daily playtime for their pets with certified Doggy Day Camp counselors. Some of the Other Company Performance Started in 2000 in Denver, Camp Bow Wow began as a way to offer high-quality pet care service for the founder’s two dogs. After opening two locations, the company began to franchise in 2003 and now has an estimated 190 franchises and company-owned establishments in the United States. In 2014, Camp Bow Wow was purchased by VCA Inc., a pet healthcare services provider. Camp Bow Wow offers dog day care, boarding, training, grooming and walking, as well as in-home pet care and poop-scooping services. Day care services include all-day playtime in indoor climate-controlled environments as well as outdoor areas. For the company’s boarding services, dogs have individual cabins with fleece padding and all-day playtime. Staff members are trained in dog behavior, pet first aid and CPR.

Additionally, the facilities are monitored 24 hours a day, seven days a week, and owners have the ability to check in with their dogs using webcams. In 2018, IBISWorld estimates Camp Bow Wow will generate $139.0 million in US industry-relevant revenue. Other Company Performance Aussie Pet Mobile International Company (Aussie Pet) began in Australia in 1996, entering the US market in 1999 and establishing its global headquarters in Aliso Viejo, CA. Aussie Pet has locations throughout the United States, Canada, Ireland, Cyprus, Greece and Australia. In 2018, the company is expected to have an estimated 225 franchises in the United States and five others across the globe that offer mobile dog and cat grooming. Vans typically are equipped with fur dryers, a grooming table and a heated hydrobath.

In addition to standard grooming services, Aussie Pet offers flea bath services and a FURminator system, which reduces shedding up to 80.0% by removing the dog’s or cat’s undercoat. Aussie Pet also provides luxury services such as massages, pad care and teeth brushing. Mobile grooming services appeal to pet owners who own elderly or nervous pets, since these services do not require pets to be transported from their home. The convenience also benefits time-sensitive owners who want their pets to be well- cared for but may not be able to take them to the groomers. In 2018, Aussie Pet is estimated to generate $173.7 million from its US franchise operations. Other Companies The Pet Grooming and Boarding industry is highly fragmented, with no industry player accounting for a significant share of the market. Nonetheless, the Pet Stores industry (IBISWorld report 45391) is moderately concentrated, with its two largest players, PetSmart Inc. and Petco Animal Supplies Inc. both offering industry-relevant services. Major Companies There are no Major Players in this industry | Other Companies Aussie Pet Mobile International Company Market Share: 2.1% Camp Bow Wow Market Share: 1.7% Best Friends Pet Care Inc. Market Share: 0.6% Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 24 Other Company Performance continued company’s locations even let owners view their pets via webcam. In addition to boarding, the company also offers bathing and grooming services for dogs and cats, which include shampoos, haircuts, flea treatment, styling, pedicures, pad and foot care and cologne. Training classes for dogs of all ages are also offered and can be purchased as part of the boarding service. Although the company generates the majority of its sales through pet care services, Best Friends also sells a range of pet products such as dishes, carriers, collars and treats. Best Friends is a private company and, therefore, no official financial information is available.

However, the company is estimated to generate $45.2 million in US industry- relevant revenue in 2018.

Major Companies Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 25 Capital Intensity The Pet Grooming and Boarding industry has a low level of capital intensity. In 2018, for every $1.00 spent on labor, the industry will invest just $0.08 in capital. The majority of training, boarding and grooming operations are labor-intensive rather than capital-intensive, as employees are needed for exercising, feeding, grooming and cleaning pets. Operators also rely on store staff for customer service roles and arranging merchandise. Although there is a low degree of capital intensity, most dog-grooming operations must purchase dryers, tables, tubs, floor grills and trays, faucets and often ramps for pets. Additionally, pet-boarding operators must purchase bowls, bedding and cleaning materials as well as enclosures for pets. Industry operators will likely invest in computers and computer equipment for recordkeeping and inventory control. The Operating Conditions Capital Intensity | Technology & Systems | Revenue Volatility Regulation & Policy | Industry Assistance Capital intensity 0.5 0.0 0.1 0.2 0.3 0.4 SOURCE: WWW.IBISWO\LRL\f.COM \fott\bd lin\b shows a hig\Lh l\bv\bl of capital int\L\bnsity Capital units per \ labor unit P\bt Grooming & Boarding Oth\br S\brvic\bs (\bxc\bpt Public Administration) Economy Level The level of capital intensity is Low Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 26 Revenue Volatility There is a low level of revenue volatility for this industry. Revenue maintained strong upward growth over the past five years. This growth occurred because of rising prices for industry services as well as increased pet ownership. These trends have resulted in consistent revenue growth for the industry.

Additionally, the Pet Grooming and Boarding industry is relatively resilient to economic downturns. During the recession, the industry still continued to grow, although at a slower rate. According to the American Pet Products Association, the majority of pet owners reported that the downturn in the economy did not affect spending levels on their pet. Technology & Systems The Pet Grooming and Boarding industry has undergone a low level of technological development over the past decade. The technology involved in pet washing and grooming has remained largely the same, although companies that offer mobile grooming have become more common over the past decade and increasingly use navigation systems, which save companies time and money. Mobile pet grooming provides pet owners with at-home grooming services for elderly or nervous pets. Companies that operate pet-boarding facilities have experienced a higher degree of technological change.

Luxury pet-boarding facilities sometimes place TVs inside of enclosures for pets to watch pet-themed shows.

These facilities may also play music to soothe nervous pets. Additionally, some companies offer pet owners the option of placing a camera inside pet enclosures so that owners can see their pet while they are away. Sites like DogVacay, which connects pet owners with sitters, have increased the number of people who host dogs in their home as a source of side income. Capital Intensity continued rising amount of luxury services offered in the industry, such as TVs for dogs in kennels, have led to a slight increase in capital intensity. Level The level of Technology Change is Low Level The level of Volatility is Low Operating Conditions Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 27 Industry Assistance The industry receives no governmental assistance in the form of subsidies or otherwise. There are a variety of industry associations including the International Boarding and Pet Services Association (IBPSA) and the National Dog Groomers Association of America, as well as the National Cat Groomers Institute of America. The International Boarding and Pet Services Association provides education, training, products, trends, networking opportunities, information and legislative support. The National Dog Groomers Association of America and National Cat Groomers Institute of America offer workshops and certifications for grooming. Regulation & Policy This industry is subject to a low level of regulation. In the majority of states, a business license is required to operate a pet-grooming business, kennel or related company. Boarding kennels often require zoning permits to be built in residential areas. They are subject to state and local government animal care, hygiene, safety, security and noise control regulations.

Additionally, operators are advised to carry some form of groomer malpractice and public liability insurance in case of owner disputes. While there is no formal or vocational training required to become a pet groomer, there are increasing moves toward the vocational licensing of pet groomers. The main association representing dog groomers is the National Dog Groomers Association of America Inc., while the National Cat Groomers Institute of America represents cat groomers. These associations offer certificate courses to groomers and educational workshops.

The organization that represents kennels is the International Boarding and Pet Services Association (IBPSA). The IBPSA offers several different services and resources including legislative support, animal training certifications and industry information. Level & Trend The level of Regulation is Light and the trend is Increasing Level & Trend The level of Industry Assistance is None and the trend is Steady Operating Conditions Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 28 Key Statistics Revenue ($m) Industry Value Added ($m) Establish - ments Enterprises Employment (People) Exports Imports Wages ($m) Domestic Demand Number of pet cats and dogs (Mil) 2009 4,559.9 2,411.3 74,720 74,617 118,601 -- -- 1,695.4 N/A 171.0 2010 4,863.2 2,695.8 78,806 78,687 126,179 -- -- 1,810.8 N/A 164.6 2011 5,133.8 2,763.4 82,386 82,257 133,305 -- -- 1,936.8 N/A 164.4 2012 5,566.8 2,948.3 86,276 86,104 143,977 -- -- 2,157.8 N/A 171.7 2013 5,912.2 3,409.9 90,411 90,232 153,047 -- -- 2,262.9 N/A 178.9 2014 6,484.9 3,458.9 95,621 95,441 163,760 -- -- 2,440.8 N/A 171.3 2015 7,154.6 3,703.5 101,492 101,342 175,755 -- -- 2,687.6 N/A 163.6 2016 7,791.4 4,153.4 106,323 106,213 188,741 -- -- 2,953.4 N/A 173.8 2017 8,057.8 4,378.6 111,881 111,765 204,985 -- -- 3,135.8 N/A 183.9 2018 8,195.9 4,449.8 115,811 115,691 211,288 -- -- 3,229.0 N/A 186.9 2019 8,374.2 4,631.5 121,259 121,133 219,044 -- -- 3,345.0 N/A 192.7 2020 8,476.1 4,678.3 125,067 124,937 224,642 -- -- 3,425.6 N/A 197.5 2021 8,575.4 4,819.7 129,367 129,233 230,297 -- -- 3,506.6 N/A 202.7 2022 8,663.1 4,838.1 133,436 133,298 235,802 -- -- 3,584.4 N/A 207.2 2023 8,742.6 4,993.7 137,775 137,632 241,310 -- -- 3,661.3 N/A 210.6 Sector Rank 17/28 15/28 6/28 6/28 10/28 N/A N/A 15/28 N/A N/A Economy Rank 539/696 420/696 66/696 62/696 169/696 N/A N/A 369/696 N/A N/A IVA/Revenue (%) Imports/ Demand (%) Exports/ Revenue (%) Revenue per Employee ($’000) Wages/Revenue (%) Employees per Est. Average Wage ($) Share of the Economy (%) 2009 52.88 N/A N/A 38.45 37.18 1.59 14,294.99 0.02 2010 55.43 N/A N/A 38.54 37.23 1.60 14,351.04 0.02 2011 53.83 N/A N/A 38.51 37.73 1.62 14,529.09 0.02 2012 52.96 N/A N/A 38.66 38.76 1.67 14,987.12 0.02 2013 57.68 N/A N/A 38.63 38.28 1.69 14,785.65 0.02 2014 53.34 N/A N/A 39.60 37.64 1.71 14,904.74 0.02 2015 51.76 N/A N/A 40.71 37.56 1.73 15,291.74 0.02 2016 53.31 N/A N/A 41.28 37.91 1.78 15,647.90 0.02 2017 54.34 N/A N/A 39.31 38.92 1.83 15,297.70 0.03 2018 54.29 N/A N/A 38.79 39.40 1.82 15,282.46 0.03 2019 55.31 N/A N/A 38.23 39.94 1.81 15,270.90 0.03 2020 55.19 N/A N/A 37.73 40.41 1.80 15,249.15 0.03 2021 56.20 N/A N/A 37.24 40.89 1.78 15,226.43 0.03 2022 55.85 N/A N/A 36.74 41.38 1.77 15,200.89 0.03 2023 57.12 N/A N/A 36.23 41.88 1.75 15,172.60 0.03 Sector Rank 4/28 N/A N/A 25/28 3/28 21/28 25/28 15/28 Economy Rank 91/696 N/A N/A 680/696 64/696 630/696 661/696 420/696 Figures are in inflation-adjusted 2018 dollars. Rank refers to 2018 data. Revenue (%) Industry Value Added (%) Establish - ments (%) Enterprises (%) Employment (%) Exports (%) Imports (%) Wages (%) Domestic Demand (%) Number of pet cats and dogs (%) 2010 6.7 11.8 5.5 5.5 6.4 N/A N/A 6.8 N/A -3.7 2011 5.6 2.5 4.5 4.5 5.6 N/A N/A 7.0 N/A -0.1 2012 8.4 6.7 4.7 4.7 8.0 N/A N/A 11.4 N/A 4.4 2013 6.2 15.7 4.8 4.8 6.3 N/A N/A 4.9 N/A 4.2 2014 9.7 1.4 5.8 5.8 7.0 N/A N/A 7.9 N/A -4.2 2015 10.3 7.1 6.1 6.2 7.3 N/A N/A 10.1 N/A -4.5 2016 8.9 12.1 4.8 4.8 7.4 N/A N/A 9.9 N/A 6.2 2017 3.4 5.4 5.2 5.2 8.6 N/A N/A 6.2 N/A 5.8 2018 1.7 1.6 3.5 3.5 3.1 N/A N/A 3.0 N/A 1.6 2019 2.2 4.1 4.7 4.7 3.7 N/A N/A 3.6 N/A 3.1 2020 1.2 1.0 3.1 3.1 2.6 N/A N/A 2.4 N/A 2.5 2021 1.2 3.0 3.4 3.4 2.5 N/A N/A 2.4 N/A 2.6 2022 1.0 0.4 3.1 3.1 2.4 N/A N/A 2.2 N/A 2.2 2023 0.9 3.2 3.3 3.3 2.3 N/A N/A 2.1 N/A 1.6 Sector Rank 11/28 11/28 5/28 5/28 6/28 N/A N/A 6/28 N/A N/A Economy Rank 392/696 396/696 93/696 90/696 140/696 N/A N/A 191/696 N/A N/A Annual Change Key Ratios Industry Data SOURCE: WWW.IBISWORLD.COM Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 29 Apr 2016 - Mar 2017 by company revenue Apr 2013 - Apr 2014 - Apr 2015 - Apr 2016 - Small Medium Large Mar 2014 Mar 2015 Mar 2016 Mar 2017 (<$10m) ($10-50m) (>$50m) Liquidity Ratios Current Ratio 1.3 1.8 2.7 1.4 1.7 n/a n/a Quick Ratio 1.0 1.3 2.2 1.3 1.5 n/a n/a Sales / Receivables (Trade Receivables Turnover) n/c n/c n/c n/c n/c n/a n/a Days’ Receivables 0.4 0.4 n/a 0.4 0.4 n/a n/a Cost of Sales / Inventory (Inventory Turnover) n/a n/a n/a n/a n/a n/a n/a Days’ Inventory n/a n/a n/a n/a n/a n/a n/a Cost of Sales / Payables (Payables Turnover) n/a n/a n/a n/a n/a n/a n/a Days’ Payables n/a n/a n/a n/a n/a n/a n/a Sales / Working Capital 52.0 27.5 21.2 82.8 41.2 n/a n/a Coverage Ratios Earnings Before Interest & Taxes (EBIT) / Interest 4.5 5.9 6.3 9.7 11.0 n/a n/a Net Profit + Dep., Depletion, Amort. / Current Maturities LT Debt n/a n/a n/a n/a n/a n/a n/a Leverage Ratios Fixed Assets / Net Worth 2.4 1.0 1.0 1.2 1.4 n/a n/a Debt / Net Worth 2.7 0.8 1.0 0.8 1.2 n/a n/a Tangible Net Worth 22.1 38.0 38.4 39.2 36.0 n/a n/a Operating Ratios Profit before Taxes / Net Worth, % 18.0 33.0 35.2 38.7 42.2 n/a n/a Profit before Taxes / Total Assets, % 6.8 13.5 12.3 12.2 16.1 n/a n/a Sales / Net Fixed Assets 2.0 4.3 6.4 2.2 3.0 n/a n/a Sales / Total Assets (Asset Turnover) 1.1 1.8 2.3 1.2 1.4 n/a n/a Cash Flow & Debt Service Ratios (% of sales) Cash from Trading n/a n/a n/a n/a n/a n/a n/a Cash after Operations 15.9 12.8 11.0 16.4 19.0 n/a n/a Net Cash after Operations 16.8 14.3 10.6 15.4 16.5 n/a n/a Cash after Debt Amortization 8.2 4.6 5.0 3.9 4.1 n/a n/a Debt Service P&I Coverage 3.8 8.0 4.9 2.4 2.6 n/a n/a Interest Coverage (Operating Cash) 7.2 8.6 7.8 8.3 8.8 n/a n/a Assets, % Cash & Equivalents 21.4 24.4 31.7 24.7 24.9 n/a n/a Trade Receivables (net) 1.1 0.9 2.0 0.6 0.5 n/a n/a Inventory 2.9 1.6 1.0 0.9 1.0 n/a n/a All Other Current Assets 3.1 2.4 0.7 0.7 0.6 n/a n/a Total Current Assets 28.5 29.3 35.4 26.9 27.0 n/a n/a Fixed Assets (net) 52.7 53.4 46.4 54.7 54.5 n/a n/a Intangibles (net) 7.7 5.4 8.0 9.8 10.5 n/a n/a All Other Non-Current Assets 11.1 11.9 10.2 8.6 8.0 n/a n/a Total Assets 100.0 100.0 100.0 100.0 100.0 n/a n/a Total Assets ($m) 223.8 355.2 268.2 219.1 77.1 142.1 n/a Liabilities, % Notes Payable-Short Term 7.7 8.3 6.6 4.4 4.4 n/a n/a Current Maturities L/T/D 5.7 2.8 4.0 2.3 2.4 n/a n/a Trade Payables 2.7 1.9 3.7 2.8 2.9 n/a n/a Income Taxes Payable 0.1 0.2 n/a 0.3 0.4 n/a n/a All Other Current Liabilities 7.7 10.4 7.6 8.3 8.7 n/a n/a Total Current Liabilities 23.8 23.6 21.9 18.1 18.7 n/a n/a Long Term Debt 29.9 22.9 24.6 28.0 29.6 n/a n/a Deferred Taxes n/a n/a n/a n/a n/a n/a n/a All Other Non-Current Liabilities 16.5 10.0 7.0 4.9 5.2 n/a n/a Net Worth 29.8 43.4 46.4 49.0 46.5 n/a n/a Total Liabilities & Net Worth ($m) 223.8 355.2 268.2 219.1 77.1 142.1 n/a Maximum Number of Statements Used 46 56 64 57 53 4 n/a Industry Financial Ratios Source: RMA Annual Statement Studies, rmahq.org. RMA data for all industries is derived directly from more than 260,000 statements of member financial institutions’ borrowers and prospects.

Note : For a full description of the ratios refer to the Key Statistics chapter online. Provided to: University of British Columbia Library (2130501157) | 26 November 2018WWW.IBISWORLD.COM Pet Grooming & Boarding in the US August 2018 30 BARRIERS TO ENTRY High barriers to entry mean that new companies struggle to enter an industry, while low barriers mean it is easy for new companies to enter an industry.

CAPITAL INTENSITY Compares the amount of money spent on capital (plant, machinery and equipment) with that spent on labor. IBISWorld uses the ratio of depreciation to wages as a proxy for capital intensity. High capital intensity is more than $0.333 of capital to $1 of labor; medium is $0.125 to $0.333 of capital to $1 of labor; low is less than $0.125 of capital for every $1 of labor.

CONSTANT PRICES The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using the current year (i.e. year published) as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving only the “real” growth or decline in industry metrics. The inflation adjustments in IBISWorld’s reports are made using the US Bureau of Economic Analysis’ implicit GDP price deflator.

DOMESTIC DEMAND Spending on industry goods and services within the United States, regardless of their country of origin. It is derived by adding imports to industry revenue, and then subtracting exports.

EMPLOYMENT The number of permanent, part-time, temporary and seasonal employees, working proprietors, partners, managers and executives within the industry.

ENTERPRISE A division that is separately managed and keeps management accounts. Each enterprise consists of one or more establishments that are under common ownership or control.

ESTABLISHMENT The smallest type of accounting unit within an enterprise, an establishment is a single physical location where business is conducted or where services or industrial operations are performed. Multiple establishments under common control make up an enterprise.

EXPORTS Total value of industry goods and services sold by US companies to customers abroad.

IMPORTS Total value of industry goods and services brought in from foreign countries to be sold in the United States.

INDUSTRY CONCENTRATION An indicator of the dominance of the top four players in an industry. Concentration is considered high if the top players account for more than 70% of industry revenue. Medium is 40% to 70% of industry revenue. Low is less than 40%. INDUSTRY REVENUE The total sales of industry goods and services (exclusive of excise and sales tax); subsidies on production; all other operating income from outside the firm (such as commission income, repair and service income, and rent, leasing and hiring income); and capital work done by rental or lease. Receipts from interest royalties, dividends and the sale of fixed tangible assets are excluded.

INDUSTRY VALUE ADDED (IVA) The market value of goods and services produced by the industry minus the cost of goods and services used in production. IVA is also described as the industry’s contribution to GDP, or profit plus wages and depreciation.

INTERNATIONAL TRADE The level of international trade is determined by ratios of exports to revenue and imports to domestic demand. For exports/revenue: low is less than 5%, medium is 5% to 20%, and high is more than 20%. Imports/domestic demand: low is less than 5%, medium is 5% to 35%, and high is more than 35%.

LIFE CYCLE All industries go through periods of growth, maturity and decline. IBISWorld determines an industry’s life cycle by considering its growth rate (measured by IVA) compared with GDP; the growth rate of the number of establishments; the amount of change the industry’s products are undergoing; the rate of technological change; and the level of customer acceptance of industry products and services.

NONEMPLOYING ESTABLISHMENT Businesses with no paid employment or payroll, also known as nonemployers. These are mostly set up by self-employed individuals.

PROFIT IBISWorld uses earnings before interest and tax (EBIT) as an indicator of a company’s profitability. It is calculated as revenue minus expenses, excluding interest and tax.

VOLATILITY The level of volatility is determined by averaging the absolute change in revenue in each of the past five years. Volatility levels: very high is more than ±20%; high volatility is ±10% to ±20%; moderate volatility is ±3% to ±10%; and low volatility is less than ±3%.

WAGES The gross total wages and salaries of all employees in the industry. The cost of benefits is also included in this figure. Industry Jargon IBISWorld Glossary PET GROOMING A service that can provide dog or cat washing, shampoo, drying, clipping, nail cutting and other services as demanded by owners and depending on the pet.

PET HOTEL A boarding kennel for cats and dogs that sometimes offers luxury services for pets. PET-SITTING Pet-minding service while owners are away on holidays or business trips.

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