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With any B-Plan Purchase
425 Page Capital Directory
Through Apr. 30


Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2017


Pet Store SWOT Analysis

 

Strengths

 

Pets are considered part of most families. As such, people will continue to purchase food and toys for them on an ongoing basis. Additionally, as many people are delaying having children - pets often act as a surrogate for these people. As such, and as has been the case for the past ten years, people are spending more money on their four legged companions. The gross margins generated by pet stores is moderate. The barriers to entry are relatively low. The startup costs for a pet store usually range from $30,000 to $100,000 (for a small facility). One of the exciting ways that a company can expand operations is through the usage of an online sales platform.

 

Weaknesses

 

Like with any retail business, pet stores face competition from major big box stores throughout the United States. Additionally, major online retailers now offer pet food and pet supplies. However, this is remedied by the fact many people bring their animals to pet stores when acquiring certain products.

 

Opportunities

 

For most new pet stores, owners seek to differentiate themselves from other businesses in the market (both online and traditional brick-and-mortar retail) by specializing in a specific type of pet or by offering highly unique types of pet food. By operating in this capacity, many smaller retailers are able to effectively compete with big box stores. In regards to growth, it is imperative that a pet store maintain an expansive online presence. Many pet store operators eventually establish a second location with the accrued profits of the business.

 

Threats

 

Beyond standard operating risks, the threat faced by most pet store owners is the continued downward pricing pressure from big box pet supplies retailers. Additionally, more people are buying their pet supplies online. Again, it is imperative for smaller pet stores to find a specific niche that they can exploit in order to stand out from competitors. The ongoing pricing issues faced by these businesses is expected to continue for a substantial period of time.


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