ESSAY QUESTIONS - Strategic planning / communication

Do you own a dog or cat or pet of any kind? If yes, you may be interested to know that PetSmart is the top pet company in the industry. PetSmart is the number-one U.S. specialty retailer of pet food and supplies, with 1,270 stores in the USA and Canada. PetSmart has become profitable and is growing rapidly as a result of excellent strategies based on a “humanization of pets” mission whereby the company treats pet owners as pet parents and treats pets and children.

CEO Bob Moran at PetSmart says his company does not ask customers “How can I help you?” but rather says “Please tell me about your pet.” PetSmart plans to open 50 new stores each year between 2012 and 2022. A key advantage for PetSmart is its excellent strategic transition from being a pet-supply store to being a pet-service center.

Ranging from 12,000 to 20,000 square feet in size, PetSmart stores offer more than 10,000 products, ranging from scratching posts to iguana harnesses and all sold under national brands and PetSmart’s own private labels. Most of these stores include a pet hotel and pet hospital. The company also sells products through its PetSmart website. Stores also provide in-store boarding facilities (PetsHotels), grooming services, day camps (Doggie Day Camps), and obedience training. Veterinary services are available, as well, in about 800 shops through pet hospital operator Medical Management International (known as Banfield), of which PetSmart owns about 20 percent.

Because there are more cats in urban areas because of size constraints, urban PetSmart stores focus more on cats and cat customers, whereas nonurban stores focus more on dog customers. But all PetSmart stores are meeting places because Moran says customers come in with their pets and just want to talk about their pets and then buy products or services offered. He says the trend toward providing more natural, organic foods and products for pets is a rapidly growing trend and PetSmart provides the latest and greatest organic products and services.

In 2013, PetSmart began letting customers reserve pet rooms and services online after extensively improving their website in prior years. The company takes full advantage of seasonal holidays by, for example, providing numerous Halloween toys and costumes in different colors and makes during October each year. But the overriding competitive advantage for PetSmart is their overarching philosophy to treat pet owners like parents and to treat pets like children, providing tender loving care of both.

Facing thousands of mom-and-pop pet stores nationwide as well as mass retailers such as Walmart and Target, PetSmart’s major competitor is privately held PETCO Animal Supplies, which has more than 1,000 stores in the USA and is headquartered in San Diego, California.

Source: Based on Emily Glazer, “PetSmart Thrives Treating Owners Like Parents,” Wall Street Journal (9-12-12): B7.