SIT, STAY, SPEND

WENDY TOTH

Pet ownership has evolved into a form of parenthood and like any other moms and dads shopping the supermarket aisles, pet parents want only the best for their babies.

Pet gifts, nutrition and accessories are in high demand, but supermarkets have to think like pet parents and merchandise animal supplies on human terms, retailers and other experts told SN.

Eighty percent of dog owners, 63% of cat owners and 72% of bird owners buy gifts for their pets, according to the most recent shopper survey from the American Pet Products Manufacturers Association, Greenwich, Conn.

Across all pet owners, an average of $17 is spent per gift, and Christmas and “anytime” top the list of reasons creatures might be rewarded, the survey reported.

“In our opinion, pets are part of the family,” Rob Keane, spokesman for Stop & Shop Supermarket Co., Quincy, Mass., told SN. “When people shop for gifts for their pets, it's the same as if they were buying for their own children. For Christmas, they look for separate gifts, as well as stocking stuffers.”

“This is a case of both manufacturers and retailers providing products that recognize that last year there seemed to be a burgeoning desire among consumers to give gifts to their pets,” said Bob Vetere, managing director of the APPMA.

For Christmas this year, Stop & Shop stores have added over 100 stockkeeping units of holiday-related pet items to what it had last year, Keane said. “It's been a huge area of growth for us.”

Among other items, Stop & Shop has added dog toys, cat toys, candy-cane-colored rawhide, Santa outfits for dogs and cats, mint-flavored bones and Christmas-themed beds for dogs, he said.

Because of this parent-like behavior, customers are not afraid to spend money on pet products, said Mike O'Shell, director of GM/HBC, the Penn Traffic Co., Syracuse, N.Y.

Penn Traffic has been updating its pet section with new pet fragrance items and shampoos and is seeing positive growth of 3% or 4% as a result, O'Shell said.

“For younger families, the pet is a part of the family and a companion to the kids. For older families, that is their baby and they will spend on things like apparel and fancy collars. This is especially true going into the month of December. You have got to be ready for that and have your section set, or the day after Christmas, you'll have empty shelves,” he said.

Holiday gift giving for pets has become so popular that the National Retail Federation, Washington, plans to include the category in its 2007 survey on shopping trends, spokeswoman Kathy Grannis said.

“We have found that consumers want to share the holiday experience with their friend who greets them at the door. It gives consumers a deep sense of happiness to do so,” she said. “We've seen a growing market in pet costumes and gifts and hope to show exactly what consumers are intending to spend on when it comes to the holidays next year.”

EASE OF CARE

A big part of the pet gift trend can be attributed to baby boomers, according Vetere. “Once kids leave the home, they are turning to pets in a big way,” he said. In the past, people reaching the age of 60 and retiring would shy away from pet ownership because they wanted freedom to travel, he said.

“But so many convenience products and services have hit the market that the ownership of a pet has become much easier and boomers as a group are making animals an important part of their lives,” Vetere said. He named timed feeding and watering devices, electronic fences, pet sitters, pet spas and pet hotels as examples.

For supermarkets, boomers are a captive audience, according to Michelle Edelman, co-editor of the book, “After Sixty: Marketing to Baby Boomers as They Reach Their Big Transition.”

“Boomers, in particular, are prone to doing things the way they always have, so it's unlikely that they will stop going to the supermarket. It's something they have been doing all their lives and are comfortable with,” she said.

It is no longer acceptable to baby boomers to be rewarding their pets only on pet terms, Vetere said. “The pet is going to be happy but the people aren't satisfied, so in buying pet gifts they are actually satisfying themselves at the same time they are satisfying their pet.”

As a result, supermarkets have an opportunity to sell some unique and high-margin pet presents, retailers said.

“We have seen some people go upscale with pets,” said Al Jones, senior vice president, procurement and merchandising, Imperial Distributors, Auburn, Mass. Ceramic ware, dishes, clothing and fancy leashes are some examples, he said.

Brookshire Bros., Lufkin, Texas, recently reset its pet sections, adding more toys, beds and feeders, all of which are doing very well, said Doug Barnett, director, GM/HBC.

“In the past, no one would have thought that we could have sold a $20 pet bed above the dog food, but now it's got a viable place in our stores.”

“Pet is growing, especially in toys and innovative items,” said Sammy Snell, director, HBC/GM, W. Lee Flowers & Co., Lake City, S.C.

Flowers recently expanded its sections another 4 feet for pet toys and accessories and have seen sales pick up with 35% to 45% margins, Snell said.

For example, one “unique new holiday pet gift idea” listed by the APPMA is the Doggie Driver by Hyper Products, Wayzata, Minn. The products is a golf driver that holds a tennis ball, allowing the owner to swing the golf club and release a tennis ball for the dog to go fetch. It sells for $24.97 on Amazon.com.

Another pet gift, edible pet greeting cards from Crunchkins, Rancho Mirage, Calif., are made out of 100% natural rawhide, are available in a variety of styles and holidays, and are printed with pet-safe edible ink. They retail for $3.95.

“A lot of baby boomers look to their pets for companionship,” said Thomas Merrick, GM category manager for Associated Wholesalers Inc., Robesonia, Pa. So it is important to let consumers know that the supermarket is a place for pet items, he said.

Since supermarket retailers already have a higher number of consumer visits than pet-focused retailers do, they should concentrate on driving up per-visit cash register ring, Edelman said. “I have seen elaborate displays at supermarkets of turkey and trimmings, so put a special dog bone with turkey flavoring in that display and they will fly off the shelves.”

“It's a matter of setting up the store to remind people that their pets have everyday needs,” she said.

Supermarkets can do this by paying attention to which human products are selling, Vetere said. “A supermarket retailer needs to put [pet] reminders next to their best-selling human items that say, ‘Don't forget me, they have stuff like this for me in the pet aisle.’”

“Planograms can be the supermarket's worst enemy,” Edelman said. “If pets are a central part of the family, the opportunity lies in merchandising pet products in general store areas. It is silly not to integrate pet items since having a pet aisle far from the fresh items creates a dead zone for consumers.”

The key is the impulse sale, Merrick said. “J-hooks and clip strips are important and a lot of successful displays are put out preceding the holidays. The key time is from Thanksgiving on.”

“We see pet gift giving continuing for quite awhile,” said Stop & Shop's Keane. “We don't see an end to it yet.”

Since baby boomers are just now turning 60, retailers can expect at least five years of unusual growth, Edelman said. “We are at the beginning of a sort of mini-boom,” she said.
Additional reporting: Dan Alaimo

Pet Products Trending Natural

Natural, organic and health-related products for pets are following after their human counterparts as popular supermarket items, wholesalers and industry analysts told SN.

“One of the next trends for pets is going to be natural,” said Al Jones, senior vice president, procurement and merchandising, Imperial Distributors, Auburn, Mass. Jones named natural flea products and health-related dental chews and bones as the next big thing.

“For supermarkets, if organic and natural foods and cereals are selling well, then retailers should get organic pet treats and foods and make sure those are sitting on the shelf,” said Bob Vetere, managing director of the American Pet Products Manufacturers Association, Greenwich, Conn.

“I think people are becoming concerned about using chemicals and there has been a lot of negative publicity about some of the flea products actually injuring pets, particularly cats, so that is why natural makes a lot more sense in that area,” Jones said.

Natural products for pets are following the same trend as natural products for people, said Michelle Edelman, co-editor of the book, “After Sixty: Marketing to Baby Boomers as They Reach Their Big Transition.”

“People are major label readers and this is especially true of baby boomers because they are concerned with their own health. So people are starting to ask, ‘Why do I feed my dog so much sodium or processed meat parts?’” she said.

Consumers have developed a greater health awareness that transfers into wanting to feel good about what their pet is eating and playing with, Edelman said.

“A pet is like a kid. It is totally dependent on you for its nutrition,” she said.
— W.T. and D.A.