A major British retailer specialised in pet products has issued a stark warning. Pets at Home cautioned on Wednesday that “urgent and necessary” measures are needed to turn around the firm’s retail arm as the group revealed half-year profits tumbled by more than a third.
Ian Burke, who took over as interim executive chairman after chief executive Lyssa McGowan quit abruptly in September, said the group was “returning to our retailing roots” as he looks to revive the chain’s fortunes. Pets at Home’s retail business saw underlying profits plummet by 84.1% to £3.5 million in the six months to October 9, offsetting a resilient performance from the vet business and leaving overall group profits down 33.5% to £36.2 million.
Mr Burke said: “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 to meet both our own expectations and those of our investors.
“I’ve spent time visiting over 100 pet care centres and engaging with colleagues at all levels of the business to establish where the challenges are isolated, resulting in the implementation of a retail turnaround plan with four clear priorities of product, price, execution and cost.
“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.”
Pets at Home opened as a single store in 1991. It has since grown as one of Britain’s best known names in the pet food and care industry.
It counts over 450 pet care centres, hundreds of Groom Rooms as well as vet surgeries.
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