Pet Store Business Overview
Pet stores sell animals, pet food, supplies, and services to pet owners. These retail establishments offer products ranging from basic necessities like food and toys to premium items such as designer accessories and organic treats. They also commonly provide additional services such as grooming, training, and boarding.
The main business models in this industry include:
- Full-Service Pet Store: Sells pets, supplies, food, and offers services like grooming and training
- Pet Supply Store: Focuses exclusively on selling food, accessories, and supplies without live animals
- Specialty Pet Store: Concentrates on particular types of pets (such as reptiles or fish) or specific product categories
Related: Checklist to Start a Business
How Do Pet Stores Make Money?
Pet stores primarily generate income through the sale of pet food, treats, and basic supplies that owners need regularly. These items make up most of their revenue, with food and treats accounting for the largest portion of sales.
- Live Animal Sales: Selling pets like fish, birds, small mammals, and reptiles to customers
- Grooming Services: Offering professional grooming, bathing, and nail trimming services for pets
- Training Programs: Providing individual or group training classes for pets and their owners
- Veterinary Care: Operating in-store basic veterinary clinics or vaccination services
- Boarding and Daycare: Offering short-term pet care services like boarding or daycare while owners are away or at work
Industry Statistics
Pet stores operate in NAICS code 453910 – Pet and Pet Supply Stores. This retail industry sells pets, pet food, and pet supplies to consumers. Here are some statistics about the pet store industry.
Pet Store Industry Size & Growth: The pet store industry generated $28.8 billion in sales over the last year. The industry has shown steady growth with an average yearly increase of 2.5% over the past five years. Growth is expected to continue at a similar rate over the next five years as pet ownership rates rise and consumers spend more on premium pet products and services (IBISWorld).
Number of Pet Stores: There are 17,481 pet stores operating across the country. The industry is dominated by two major chains – PetSmart and Petco, which together control a significant portion of the market. PetSmart leads with $6.7 billion in revenue, while Petco follows with $3.8 billion. The remaining market consists primarily of independent stores and small regional chains (IBISWorld).
Pet Store Profit Margin: Pet stores typically have profit margins between 5% and 7%.
Startup Stories
Also See: Ideas for Naming a Pet Store
Costs To Start a Pet Store
Starting a pet store typically costs between $100,000 and $400,000. This range accounts for different store sizes and locations, from small specialty shops to larger full-service stores.
There are several expenses when starting a pet store, but these are some of the bigger costs to plan for:
Store Buildout: A retail space for a pet store needs proper ventilation systems, specialized lighting, water systems for aquariums, and separate areas for different types of animals. Depending on the size of the space and required modifications, the buildout can range from $75,000 to $150,000.
Initial Inventory: Pet stores need a substantial amount of inventory, including food, supplies, accessories, and live animals. The starting inventory typically costs between $40,000 and $100,000. This includes establishing relationships with wholesalers and maintaining stock levels across different product categories.
Equipment and Fixtures: Pet stores require specialized equipment like display cases, shelving units, animal habitats, grooming stations, and point-of-sale systems. These items generally cost between $30,000 and $80,000, depending on the quality and quantity of equipment needed.
Animal Care Systems: Proper housing for live animals requires specialized equipment, including aquarium systems, reptile habitats, bird cages, and small animal enclosures. These systems, along with monitoring equipment and backup power supplies, typically cost between $15,000 and $40,000.
These estimates provide a general idea of startup costs, but actual expenses will vary.
Resources:
American Pet Products Association
Independent Pet Retailer Association
Pet Industry Distributors Association
World Pet Association