Petworld

6 Pages Posted: 30 May 2017 Last revised: 12 Oct 2019

See all articles by Bidhan L. Parmar

Bidhan L. Parmar

University of Virginia - Darden School of Business

Jenny Mead

University of Virginia - Darden School of Business

Abstract

According to PETWORLD financials, the year 2012 had seen a dip in sales, fewer people coming into its stores, and comparable store sales that were weaker than expected. Competition in the pet-care market was increasingly fierce with a variety of players, big and small, fighting for market share. The industry itself had changed rapidly in just a few years, and its continued growth and financial success required constant innovation and creativity. PETWORLD needed to identify ways in which it could create a unique and entertaining way to leverage the in-store experience to generate both store and online sales.

Excerpt

UVA-G-0636

Rev. Oct. 7, 2019

PETWORLD

John Shepherd, executive vice president of marketing at PETWORLD, a leading retailer of pet products and supplies in the United States, was looking over the company's 2012 financials. The year had seen a dip in sales, fewer people coming into the stores, and comparable store sales that were weaker than expected. Competition in the pet-care market was increasingly fierce. A variety of players, big and small, were fighting for market share. The industry itself had changed rapidly in just a few years, and its continued growth and financial success required constant innovation and creativity. Shepherd needed to identify ways in which PETWORLD could create a unique and entertaining way to leverage the in-store experience to generate both store and online sales.

Company Background

The first PETWORLD store opened in 1988 in Los Angeles. By 2013, the company had 1,278 stores in the United States, Canada, and Puerto Rico and more than 52,000 employees. PETWORLD's 2012 revenues were $ 6.7 billion, with $ 389,529 thousand net income (see Exhibit1). PETWORLD carried a wide range of items totaling approximately 11,000, including food, supplies, grooming products, toys, and treats. The stores also sold tropical fish, reptiles, birds, and small mammals (mostly guinea pigs and hamsters). Over the years, PETWORLD had differentiated itself from other retailers by adding such services as boarding, grooming, obedience classes, adoption centers, and veterinary care in many PETWORLD stores, all supporting its motto: The Premiere Place to Pamper Your Pet. The company's core values were “to provide quality lifetime care to every pet, every parent, every time.” There was also a frequent buyer program called PetSave, which offered discounts and coupons.

. . .

Keywords: market share, market research, market trends, in-store sales, online sales, pets

Suggested Citation

Parmar, Bidhan L. and Mead, Jenny, Petworld. Darden Case No. UVA-G-0636. Available at SSRN: https://ssrn.com/abstract=2974611

Bidhan L. Parmar (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Jenny Mead

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
0
Abstract Views
114
PlumX Metrics