Kathrine Frich
A major British retailer has cautioned that its business is under serious strain, prompting a push for rapid reforms.
Pets at Home said its retail arm is now performing far below expectations, forcing the group to introduce what it calls “urgent and necessary” corrective measures.
Profits collapse
According to reporting from The Express, the company revealed that half-year profits had dropped by more than a third.
Its retail division suffered the sharpest hit, with underlying earnings sinking 84.1 percent to £3.5 million in the six months to October 9.
A stronger showing from its veterinary services softened the blow but could not prevent overall group profits from falling to £36.2 million.
Ian Burke, who stepped in as interim executive chairman after the sudden departure of CEO Lyssa McGowan in September, said the priority was to refocus the chain.
“For over 30 years, Pets at Home has been a business with a clear purpose, an established market and loyal customer base, but it’s clear that urgent and necessary action is needed to return the retail business to growth,” he told the outlet.
He added that the strategy includes four areas: product, price, execution and cost.
Leadership reset
Burke said he has visited over 100 stores to identify where performance has slipped.
His goal, he explained, is to “stabilise and rebuild momentum” and prepare the ground for the company’s next chief executive.
“We are returning to our retailing roots to stabilise and rebuild momentum in our retail business, and to lay the foundations for a new chief executive in due course,” he said.
Pets at Home opened its first shop in 1991 and has grown into one of the most recognisable pet-care brands in Britain.
Long-term growth
Today the chain operates more than 450 pet-care centres as well as grooming salons and veterinary practices.
Despite the recent setback, the group stressed that it aims to recover by tightening operations and restoring confidence among investors.
The company has not indicated when it expects its retail turnaround plan to show visible results.
Sources: The Express, company statements
