Walmart boosts sales outlook as shares surge to record high
Americans are shopping more at Walmart. The world’s largest retailer by sales raised its annual sales and profit forecasts for a second time this year.
Walmart already sells more pet food than any other retailer in the country, and now the company is leveraging that strength by moving into veterinary services and grooming, with its Arizona stores leading the charge.
Walmart, which also sells more groceries than any other retailer, has opened grooming and vet facilities in two of its Arizona stores, in Glendale and Chandler, with a third opening soon in Mesa. The company has only three other such facilities nationally. A spokesperson said Walmart views Arizona as a strong market for pet services.
Pet services, especially veterinary care, is a relatively healthy retail category, with Morgan Stanley expecting 4.9% annual growth from 2024 to 2027.
Within the pet industry, veterinary care is one of the fastest-growing segments, with four in five pet owners taking their animals to see a vet at least once over a recent six-month period, according to a survey of 2,300 people conducted by the investment research firm.
Pet spending expected to rise
The pet industry in general ranks among the “most vibrant” growth markets in retail, the company added, with households spending around $1,300 per pet annually. That’s expected to increase to around $1,450 per animal by 2026 and $1,730 or so by 2030, according to Morgan Stanley estimates. Spending surged early in the COVID-19 pandemic, when many people brought home pets as companions but has tapered off a bit more recently.
Americans spent $147 billion on their pets in 2023, with the total expected to reach $151 billion this year, according to the American Pet Products Association. Food and treats were the largest category last year at $64 billion, followed by veterinary services/products at $38 billion.
Kaitlyn Shadiow, a Walmart vice president for pet merchandising, in a statement, cited the company’s wide product selections, along with prescriptions and now vet and grooming services as reasons for pet parents to consider the retailer, along with affordable prices and convenient locations.
The new Walmart pet-services locations are attached to stores but with separate entrances. The Chandler location features two full-service dog grooming stations and a self-serve dog wash that costs $9 for 15 minutes. That’s in addition to eight kennels that hold dogs while they’re drying, allowing owners to shop in the main store if they choose. The two veterinary rooms allow for health and wellness checks and minor medical services, along with vaccinations that start at $25. Other grooming services at Walmart include nail trims, teeth and ear cleaning and basic fur trimming.
Competing and working with other veterinarians
While Walmart’s vets won’t perform surgeries, including neutering or spaying, the company’s entry into the field is generating interest within the veterinary and grooming businesses.
Doug Patriquin, co-owner of Dr. Kelly’s Surgical Unit, said he welcomes low-cost companies such as Walmart. By providing more access to affordable veterinary care, Walmart can help reduce euthanasia, the need for some people to surrender pets to shelters, control pet populations and prevent diseases and suffering, he said.
Dr. Kelly’s operates five veterinary surgical centers in Arizona. “It is why we exist and would partner with Walmart on their journey if it helped more people and their fur babies,” Patriquin said in a statement to The Republic.
Also, many consumers express loyalty to local veterinarians, which include single-outlet, mom-and-pop locations. For example, nearly one-third of pet owners surveyed said they fill prescriptions for their animals through vets, even though less-expensive options often are available, “because they like their vet and want to help his/her business,” according to the Morgan Stanley report.
Another animal service Walmart is offering involves strays: Anyone who finds a wandering dog or cat can have the animal scanned at no cost at one of the locations with pet services to see if an owner can be located.
Walmart is the dominant in-store retailer of pet food and treats, followed in order by Target, Phoenix-based PetSmart, Petco and Costco, according to Morgan Stanley. Walmart ranks second behind Amazon for online sales of pet food and treats, with Chewy third and then Target and PetSmart. Industry publication Progressive Grocer ranks Walmart as the largest grocery retailer in North America.
In addition, the company is a powerhouse for jobs. Walmart ranks as the second-largest nongovernmental employer in Arizona behind Banner Health, according to this year’s Republic 100 special report. Amazon is in third place, followed by Kroger and then McDonald’s.
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Publish date : 2024-10-30 06:25:00
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