Petsmart 2009 Annual Report Download - page 4

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Chloe is just one of the millions of pets—dogs, cats, hamsters, birds, reptiles and  sh—whose
lives are enriched by the range of products, services and assistance we provide. We have
passionate, knowledgeable associates who love to see healthy, happy pets.
Looking ahead
Because we don’t expect much if any improvement in the macro-economic environment in 2010,
we remain sharply centered on those things within our control—where opportunity is plentiful
and where we can continue to build market share and the bottom line. For example, last year we
made great strides in cost control across the business without negatively affecting the customer
experience or associate morale. We’ll keep up the pursuit.
We saw respectable increases in our customer satisfaction scores as we applied customer insights
to our marketing and merchandising efforts, improved our training tools and processes, and
armed our associates with information to build even stronger and more meaningful bonds with
Pet Parents. Those efforts remain a priority in 2010.
We’ve bolstered our merchandising capabilities with strong and experienced leadership, effective
strategies and sturdy vendor partnerships. Our emphasis on proprietary brands and adding
strong new national and exclusive brands such as the Martha Stewart Pets® line—to reach
stores this spring—create compelling reasons for Pet Parents to shop our stores. These efforts
give us better margins, a signi cant competitive advantage and future growth opportunities.
We also remain focused on increasing our return on capital and seeking opportunities to invest
in growth and high return initiatives. We’re committed to delivering superior total shareholder
returns in 2010 and years beyond through expense discipline, improved pro tability of our
existing assets, mix of share repurchases, dividends, and store growth. We’re con dent we can
achieve this as we execute the strategies that differentiate us, deliver value and set the standard
for customer engagement and loyalty.
Our business model is strong, but we owe our success to the support of 45,000 dedicated
and passionate associates in our stores, distribution centers and of ces throughout North
America. We look back at 2009 with sincere thanks for all that they accomplished and ahead
with great anticipation for what they will achieve. We are well positioned to stay healthy, happy
and produce long-lasting results and sustained shareholder value.
Sincerely,
Philip L. Francis
Executive Chairman
Robert F. Moran
President and
Chief Executive Of cer