Retail Giant Expands Pet Care Services Amid Growing Demand
Walmart, the nation’s largest retailer, is shifting its focus towards pet care, announcing the opening of five new pet services centers in Arizona and Georgia. This expansion comes after the successful launch of its first pet services center in the Atlanta area last year. The new locations will offer veterinary care, grooming, and other pet-related services, catering to the growing demand for pet care.
According to Kaitlyn Shadiow, VP of Merchandising for Pets at Walmart U.S., the pet category presents an attractive growth opportunity, driven by frequent purchases, broad appeal across age groups, and resilience in times of economic uncertainty. The new centers will have dedicated entrances adjacent to Walmart stores and will be staffed by employees of PetIQ, a vet care and pet product company.
Walmart’s decision to expand its pet services comes after seeing strong visitation rates and repeat business at its first location. Notably, 25% of customers were new to Walmart’s pet category, and the services created a “halo effect” that boosted sales of pet food and supplies. The retailer aims to capitalize on the growing pet ownership trend, which has seen a significant surge during the Covid pandemic.
Industry projections suggest that annual household spending on pets will reach $1,445 per animal by 2026 and $1,733 by 2030, representing a 113% increase from 2019. Walmart has seen high demand for pet services, with a subscription to veterinary telehealth provider Pawp becoming the most popular limited-time offer for its membership program, Walmart+. In response, the retailer will make this offer a permanent benefit starting next week.
The pet category has also become a key avenue for Walmart to attract younger and more affluent shoppers. Gen Z is the fastest-growing segment for Walmart’s pet category, and the number of customers shopping the pet category with a household income over $100,000 has grown by 36% year over year.
In contrast to its decision to close all 51 health-care clinics for people earlier this year, Walmart views pet care as a simpler and more profitable business. With fewer insurance reimbursement complexities and smaller center requirements, the retailer is confident in the long-term success of its pet services expansion.
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