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Interim results leaves Pets at Home wagging


Specialist retailer Pets at Home saw consistent revenue growth over the last six months, particularly in its expanding service businesses. 

For the 28 week period ending 8 October, Pets at Home Group enjoyed a 6% rise in total revenue growth, reaching £404.5m. Service revenues jumped by 26.2%, reaching £41.9m. This remains a point of focus for the company, which opened 15 veterinary practices and 10 grooming salons during the period. 

Merchandise revenues reached £362.6m, rising by 4.1%. The number of customers using the click and collect service grew to encompass 45% of the company’s total online revenues. 

Growth in Accessories was offset by continuing challenges to Health & Hygiene product sales; an issue that has followed Pets at Home for a number of months. 

Meanwhile, the Pets at Home VIP club membership grew to 3.9m. 

The company also said that its space rollout was “on track”, with the opening of six new stores, bringing its total estate to 405. The group also opened two new stores for Barkers, its dog-focused chain. 

“Our core strategic drivers remain strong and I am pleased with the progress we have made in the first half of the year…” said CEO Nick Wood. 

“Pet services have again grown significantly, benefitting from sustained organic growth in both our vet and grooming businesses, together with encouraging results from the acquisition of our first specialist referral hospital. In Merchandise we continue to lead the market and grow our share in Advanced Nutrition foods. 

We have strengthened the business further through the implementation of our new divisional structure, whilst investment in our colleagues and seamless shopping experience continues to build our competitive and strategic strength.” 

These results came on the back of a consistent but underwhelming second quarter which left investors somewhat disappointed. 

Commenting on the upcoming changes to the National Living Wage, the company’s report said that the incremental impact would be £2m, as it adjusted its starting hourly rate and those of the employees in the Steps training programme. 

Published on Tuesday 24 November by Philip Gallagher

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