Industry Analysis & Industry Trends
With rising pet ownership among US households and more owners humanizing their pets, online pet food and supply stores have fared well over the five years to 2014. Increasing popularity of premium pet food supplies have also fueled industry growth over the period; since premium goods are typically priced higher, they provide a good source of revenue for players. Nevertheless, increasing competition will likely constrain profit margins.... purchase to read more
Industry Report - Industry Investment Chapter
Capital intensity for online pet food and pet supply retailers is medium. Capital investments come in the form of warehouses, computer equipment and point of sale (POS) systems. Upgrades and replacements do not add much in the way of capital expenses; for every dollar spent on labor, the average operator puts only $0.24 toward capital equipment.
The industry is relatively labor intensive. Instead of staffing physical locations across the country, employees are hired to enhance the customers' online shopping experience and increase the retailer's web exposure. The industry's staff is typically responsible for web development, search engine optimization (SEO) and customer service. As such, wages account for a larger portion of revenue than capital expenses... purchase to read more