Business Proposal: Pet Smart
University of Phoenix
PetSmart opened its first store in 1987 as PetsMart and has become the leading specialty provider of products, services and solutions for the lifetime needs of pets. At the time of going public in 1993, the company operated 64 stores and added more than 40 stores that year. In 1999, PetSmart launched PETsMART.com in conjunction with PetJungle.com. In 2003 PetSmart finished remodeling to replace the traditional warehouse feel with a specialty-store shopping atmosphere, then changed the name from PetsMart to PetSmart with an emphasis on the “smart” rather than then “mart” (United States Securities And Exchange Commision). At the end of FY 2010, PetSmart operated 1,187 retail stores in North America. Each location ranges in size from 12,000 – 27,500 square feet and carry an offering of 10,000 distinct SKU’s comprised of nationally recognized brands, proprietary brand, including both exclusive and private label products. In addition to the product assortment, PetSmart offers a selection of pet services, including grooming, training, boarding and day camp. Finally, there are 768 full service veterinary hospitals through a wholly owned subsidiary, Medical management International, Inc., collectively referred to as “Banfield” under the registered trade name of “Banfield, ThePetHospital”. Of the 768 pet hospitals 11 are operated by other third parties in Canada. The United States pet and pet supply store industry includes about 8,700 stores with combined annual revenue of about $11 billion (First Research, 2012) PetSmart with reported revenue from the 10K ending January 30, 2011 5,693.8 million represents a market share of 52.22%. Please note that this share number is skewed due to the inability to compare directly to the pet and pet supply store industry specialty stores. The revenue potential is fragmented within the box retailers...
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