THOUGH MOST DOG food is still sold through supermarkets, the food channel faced more competition from specialty pet stores and mass merchants, which offer expertise and low prices. Sales at drug stores, meanwhile, continued to climb as that channel plays more of a role in convenience shopping. Fearful of losing their valuable pet business, supermarkets went on the offensive by launching new loyalty programs. Pathmark, Carteret, N.J., for instance, created a pet club that gives shoppers a ...

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