IndiePet’s first IndieChat – What our Retail Members are Saying.
IndiePet, the only trade association representing independent and neighborhood pet retailers, held its first IndieChat on Wednesday, July 27th. IndieChat is a secured, facilitated discussion via video conferencing for IndiePet retail members who want to hear from experts on current “hot” topics and issues then share and discuss their own experiences and practices on these topics.
Inflation, being at the top of so many retailers’ concerns, was the perfect topic for this first IndieChat and attracted twenty-four retailers from around the country to register. Eighteen regristrants run retail operations of fewer than five units, providing this group a real peer-to-peer perspective.
IndiePet called upon its data partner, SPINS to provide expert insight and facilitation for this IndieChat. Moderating the discussion and presenting valuable insights was Dawn Valandingham, Senior Vice President of Retail at SPINS. Dawn shared insights into inflation in the pet industry, how pet stacks up against other segments, and what actions retailers might take to manage inflation.
Dawn began the conversation by sharing average price increases over a 24-week period for the pet channel compared to similar retail channels – the Natural Enhanced products channel and the Multi-Outlet channel (includes food, drug, mass merch, big box). The takeaway was that pet store prices are comparable to the other channels with a total product increase of 10.3% vs. 7.0% and 15.4% for Natural Enhanced and MULO respectively. Dawn also presented data that supports a shift in pet owner spending. Consumable categories like food and treats are seeing less of a unit erosion, -4.1% and -4.4% respectively, than pet habitat, travel and supplies, and pet toys collars and apparel, 19.6% and 11.8% respectively even though food and treats are among the leaders in price increases.
And finally, Dawn offered a few suggestions for how retailers might manage inflation in their businesses. Her first recommendations were to embrace and highlight the Better-for-You products that have shown more stable price increases. Another was to promote the quality and affordability of private label.
The IndieChat group discussed how they are managing inflation and what they are seeing in their stores. From vendor to product mix management to technology implementation, the retailer group shared their thoughts.
Product mix management was a key focus for the retailers in the chat. Featuring products that move and deciding when to discontinue products has become even more important to retailers in this time of inflation. They also talked about the importance of having less expensive options for customers who may have previously purchased premium priced products (and are now feeling the pinch), and that plant-based and sustainable products are getting more attention from pet owners.
An important aspect of independent pet retailers is differentiation. What makes an indie retailer better… what inspires customer (and staff) loyalty? Retailers on this IndieChat felt that personal contact with well-trained staff was one of the biggest reasons that customers shop their stores. Product selection is important, but the face-to-face contact and ability to create and maintain long-term relationships with customers creates the experience that customers expect from their local independent pet retailer.
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A retailer who recently began offering pet services in their stores described how the added services both keep traffic up and help differentiate his stores from others. Services such as on-site veterinarians, grooming, and boarding are needed by customers and can only be provided by brick and mortar businesses. A customer who already has a trusting relationship with their independent pet retailer is much more likely use offered services, thus further deepening the relationship.
The group also discussed the role that technology plays during times of inflation. Having the right POS system or scheduling software is critical to creating operational efficiencies that benefit both the customer and the business. Up-to-date technology reduces frustration and errors and allows the addition of add-ons and upgrades to meet changing customer needs.
Participants in this first IndieChat came away with great insights on inflation, actionable steps to take to manage it within their businesses, a sense of belonging, and the satisfaction of being able to help fellow retailers. In other words, they were able to embody IndiePet’s mission - To empower independent and neighborhood pet retailers to work together as peers for the wellbeing of North American pets and pet owners as they maintain a strong, sustainable and growing place at the heart of the pet industry.
We plan to continue IndieChats on a regular basis. Our next chat is scheduled for November 2nd and will focus on another very important topic of the day, staff recruitment and retention. Registration information will be posted on our website soon.
