Pet retailers want consumers to come to them for all their veterinary and health care needs.
Online pet pharmacy PetMeds wants to be the destination for all pets and health in the near future Finding PetCareRx and provide Telehealth visits Via Vetlive. In October, Petco announced a multi-year partnership with Pet Insurance Wellness Company to provide pet insurance for more pets. In the same month Chewing Expanded CarePlus health and wellness offering in partnership with Lemonade Pet to allow customers to choose and customize their pet plan.
Health services are generally seen as a stable revenue stream at a time when some consumers are starting to pull back on consumer goods. Average unit price for CPG pet products It grew 11 percent in January. And some retailers have reduced their inventory to avoid excess inventory, according to a March report from Nielsen. And there’s an opportunity for retailers to tap into a category that’s experiencing demand, with traffic at veterinary clinics increasing. 6.5% by 2021At 4.5% growth in 2020, according to data analysis firm Vetskes. As a result, pet retailers are expanding their offerings and accelerating their investment in animal health services.
It’s over 23 million American families According to the American Society for the Prevention of Cruelty to Animals (ASPCA), pets were adopted during the outbreak. This has led to a flood of new patients in veterinary hospitals. As a result, some pet parents have to plan their vet visits months in advance and some clinics do Rejected new patientsLauren Beitelspaker, associate professor and associate professor of marketing at Babson College, said:
The entry of pet retailers into the health category provides convenience for those looking to get their pets a veterinary visit.
“Two journeys rolled into one,” Betelpacher said. “It might be less expensive or require less paperwork or bureaucracy.”
In addition, offering health services gives these retailers access to comprehensive information on the overall health of pets, said Brad Jashinsky, director analyst at Gartner. They can then use this information to inform their product and service mix, along with other strategic decisions, he said.
“The more you know about the pet, the more services and products you can offer,” Jashinski said. “As dogs, cats, and other pets age, [health services] Become a big business and part of that repeat business.
Some pet retailers are already using customer data for personalization. Petco Chief Customer Officer Darren McDonald He previously told Modern Retail. In December, it’s developing a personalization model that will improve online recommendations and streamline people’s shopping journeys.
“This is 360-degree health and wellness [strategy] Sure, it lets you buy your dog food and buy your dog bed or cat tree, but we make it seamless for you to take care of your animal in all the other ways you need to take care of it,” McDonald said. “So we have veterinary clinics, and if you go to a veterinary clinic, we pass the information on to our vets and our vets without any problems.”
In the year About 1.9 million pets will visit Petco hospitals and clinics by 2022, CEO Ron Coughlin told investors on an earnings call last month. The retailer expanded its veterinary operations from 10 hospitals to 247 in early 2018. It’s called a paid loyalty program Important careIt has over half a million members and has seen significant growth in the past year.
PetMeds, on the other hand, wants to be the market leader in pet safety and health. Matt Hulett, CEO of PetMeds, told Modern Retailer that he sees telemedicine as an area of opportunity and leverages its long-term e-commerce playing field. While there are only a handful of states where pet parents can legally meet and receive prescription medications from a veterinarian, the rules are changing quickly, he said.
“It’s not always convenient to take your pet to the vet unless they absolutely need to be there,” Hulett said. “There is a shortage of vets. So offering a 24/7 service where you get the best quality service and care and pay less than vet visits and don’t need to drive is appealing to many consumers. Petmeds as well An agreement was signed In February to provide pet insurance to customers with Pumpkin Insurance.
According to Gartner’s Jashinsky, retailers need to make sure the cost of building the infrastructure is worth the return. As pet retailers build space for animal clinics, they also lose space for merchandise. for instance, PetSmart He is using openings in the store to allow veterinarians to open their own practices.
Additionally, retailers may be liable for malpractice. Chewy, for example, has faced skepticism from veterinarians interviewed by CNBC, who say the telehealth service Connect With A Vet may be harmful in some cases when a physical exam is needed.
“The bar for customer service is very high in pet care,” Jashinski said.