Petsmart 2000 Annual Report Download - page 4

Download and view the complete annual report

Please find page 4 of the 2000 Petsmart annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 70

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70

3
retailers and veterinarians, sell pet supplies. The channels of distribution for pet supplies are highly fragmented,
with superstores and discount stores estimated to account for over 50% of U.S. sales volume.
The Company estimates that U.S. sales of equine food, tack, riding apparel and related supplies and
equipment were approximately $8.3 billion in 1999.
U.S. sales of pet services were estimated at approximately $9.5 billion in 1998. Major pet- related services
include veterinary care, grooming, and obedience training. The Company considers the pet services industry also
to be highly fragmented and significantly under-served; many pet owners do not regularly use pet services due to
inconvenience, a lack of awareness or the cost of the services provided.
Merchandise
Merchandise, which represented approximately 96% of PETsMART’ s North American retail revenues in
fiscal 1999, generally falls into three main categories:
•
Pet Food, Treats and Litter. PETsMART emphasizes premium dog and cat foods, many of which are not
available in supermarkets, warehouse clubs or mass merchandisers, as well as quality national brands
traditionally found in supermarkets and pet stores. PETsMART also offers a wide-selection of its own
corporate brand food products including “Authority®” premium dog and cat food and treats, “Sophista
Cat®” cat food and “Grreat Choice®” dog food. The sale of pet food, treats and litter comprised
approximately 48% of PETsMART’ s North American retail revenues in fiscal 1999.
•
Pet Supplies. PETsMART’ s broad assortment of pet supplies includes collars, leashes, health and beauty
aids, shampoos, medication, toys, animal carriers, dog houses, cat furniture and equestrian supplies. The
Company also offers a complete line of supplies for fish, birds and small animals, including aquariums, filters,
birdcages and small animal supplies. Corporate brand pet supplies include “Top Paw®”, “Top Fin®” and
“Top Wing®”. PETsMART also has an equine department in certain superstores serving trade areas, which
have high rates of horse ownership. The sale of pet supplies comprised approximately 45% of
PETsMART’ s North American retail revenues in fiscal 1999.
•
Livestock and Other Goods. PETsMART superstores feature fresh water tropical fish and, in certain
superstores, domestically bred birds, reptiles and small animals. In addition, PETsMART actively supports
the activities of local humane organizations through its in-store PETsMART Charities’ Luv-A-Pet pet
adoption centers. Livestock and other non-pet supply goods comprised approximately 3% of the
Company’ s North American retail revenues in fiscal 1999. Through its Luv-A-Pet adoption efforts, over
192,204 animals were adopted during 1999 and over 700,000 animals have been adopted since the
program began in 1994. All adoption revenues go to the local adoption agency.
Pet Services
Unlike its principal competitors, PETsMART offers a wide range of services for the pet owner. Full service
grooming and pet training services are offered at substantially all PETsMART stores. As of the end of fiscal
1999, approximately 330,000 square feet of space, or nearly 700 square feet per pet salon, was allocated for
9/16/2010 www.sec.gov/Archives/edgar/data/86…
sec.gov/…/0000950153-00-000575-d1.… 4/70