Petsmart 2008 Annual Report Download - page 4

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Every Pet, Every Parent, Every Time
strengthening our relationship with Banfield, The Pet Hospital®, telling compelling stories about our products and
creating excitement in our stores for both customers and our selling associates. As a result, we believe we can
continue to grow our market share and drive more productivity through our current assets.
We understand that our differentiation and strength comes from knowing our customers and the passion that they
have for their pets. For this reason, we are beginning our journey toward a deeper focus on the customer and the
many ways we can strengthen the relationship and lifetime care we offer to pet parents.
Our customer database has continually allowed us to deepen our understanding of who our customers are, how
they shop and what they are looking for. With the use of our extensive database and consumer research, we now
have the ability to segment our customers, while developing targeted strategies to drive incremental behavior. This
data is impacting how we invest to reach our customers, while driving many of our everyday business decisions.
These efforts will remain at the forefront of our 2009 focus, as we seek to strengthen our customer base, and
increase the overall value of our brand to our customers.
Despite some slowing related to the economic environment, our services offerings still remain a very “sticky” part
of our business, as pet parents remain loyal to us when they are in need of services. Total services sales were
$527 million in 2008, up 15.8 percent from 2007. Grooming remains strong, as the Christmas holiday week
produced the highest single week of grooming sales in our history. We also reached another milestone this year,
as one of our grooming salons hit $1 million in sales for the year.
We are very fortunate here at PetSmart. We are a leader in an industry that services a strong emotional bond
between pet parents and their loved ones. Our associates understand that bond and take pride in supporting it.
Despite the macro economy, we expect to look back at this time as one that helped us focus on what is critical to
strengthen our market position, while solidifying our long-term growth potential. Our management team and
associates remain committed to stay the course. We expect to efficiently use our capital, while remaining adaptable
to our rapidly changing environment. As a result, we remain confident that our promise of Total Lifetime Care for
every pet, every parent, every time, will produce long-lasting results and shareholder value.
Sincerely,
Philip L. Francis
Chairman and Chief Executive Officer
Robert F. Moran
President and Chief Operating Officer