Pets at Home cites ‘challenging consumer backdrop’ for sales slide

Pets at Home has reported a slump in retail revenue in the third quarter, blaming a “challenging consumer backdrop”.

For the 12 weeks to January 2, 2025, the pets specialist reported a 2.4% decline in retail revenue with a 2.8% fall in like for likes. The retailer said the third quarter “saw a more challenging UK consumer backdrop with particularly weak footfall from October” although it noted during the period that its digital performance “improved”.

Total consumer revenue for the period jumped 2.3% to £468m, although total group sales dropped 0.2% to £361.6m.

Vet Group revenues jumped 21.3%, with practices seeing double-digit revenue growth driven by subscriptions, visits and average transaction values.

The retailer said that full year underlying profit guidance remains unchanged, with Pets at Home on track to deliver “modest growth” in profits.

“Against a still subdued consumer backdrop,” the retailer noted, “we have maintained a disciplined gross margin performance, supported by strong Christmas seasonal sell-through”.

During the period, Pets at Home said it had begun fulfilling orders from its new Stafford DC, and now expects to pull out of its old Northampton distribution centre by the end of the financial year, as part of its network optimisation programme.

However, it noted that costs associated with the switch in distribution centres had ballooned out to £11m from £7m due to the “phasing of costs associated with our exit” moving into the new financial year.