Petsmart 2014 Annual Report Download - page 9

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Table of Contents
by providing an unparalleled shopping experience every time a customer visits our stores or PetSmart.com. In order to stay
relevant with our customers, we plan to enhance the customer experience through technology. Our PetPerks customer loyalty
program, which is available in all our stores and on PetSmart.com, enables us to deliver personalized offers and other content
based on the customer's purchases, preferences, and unique needs. Our new, enhanced promotional capabilities support this
program, by allowing customers to enroll in PetPerks via pin pads at the register. We plan to accelerate our deployment of
new omni-channel capabilities, which include launching a new PetSmart.com website platform and redesigned mobile site,
expanding our in-store availability feature online, equipping our store associates with mobile devices to help customers, and
rolling out order online/pick-up-in-store capability. With increasingly greater capacity to customize in-store and online offers
relevant to our customers, we believe we are helping them build a stronger, more meaningful bond with their pets, and greater
loyalty to PetSmart.
We are training our store associates to identify customer needs and provide appropriate solutions. We measure our
success in every store, and a portion of the annual incentive program for the store management team is linked to customer
satisfaction. By providing pet parents with expertise and solutions, we believe we are strengthening our relationships with
customers, building loyalty, and enhancing our market leading position, thus differentiating ourselves from our competitors.
Expanding our proprietary and exclusive products and services. We are focused on developing and strengthening our
brand identity and enhancing the emotional connection pet parents make with their pets and with PetSmart. We are committed
to developing moment-making products, services, and experiences for pet parents. We provide pet parents with information,
knowledge, and product solutions, including both exclusive and proprietary offerings, that help their pets live long, healthy,
and happy lives. Our marketing and advertising efforts focus on emphasizing our unique offerings for customers and
promoting our strong value proposition. We continually seek opportunities to strengthen our merchandising capabilities
allowing us to provide a differentiated product assortment and innovative solutions. We expect to build on the success of our
proprietary brands in consumables, and work with our national brand vendors to bring in new PetSmart-exclusive
formulations and sub-brands. In hardgoods, our focus is on continuing to grow our existing brands, developing new PetSmart-
only unique assortments, and building out our pipeline of innovation for the future.
Services are an integral part of our strategy, and we are focused on driving profitable growth in our services business. We
believe services further differentiate us from our competitors, drive traffic and repeat visits to our stores, increase transaction
size, provide cross-selling opportunities, and allow us to forge strong relationships and build loyalty with our customers.
Attracting and retaining our most valuable customers. Our most valuable customers buy channel-exclusive foods, use
grooming services, and are new pet parents of dogs, cats, and fish. We plan to introduce hundreds of new items as part of our
consumables reset in the first quarter of 2014. For our grooming customers, we are launching our "Pet Expressions" creative
grooming services across the chain, including chalking, stenciling, and feathering, with washable, non-toxic ingredients. We
offer puppy starter kits for new pet parents, providing them with savings and an introduction to our best products and services.
We believe this will serve as a powerful tool for driving conversion and increased customer retention.
Our expansion strategy includes increasing our share in existing multi-store markets, penetrating new markets, and
achieving operating efficiencies and economies of scale in merchandising, distribution, information systems, procurement,
marketing, and store operations. We continually evaluate our store format to ensure we are meeting the needs and expectations
of our customers, while providing a return on investment to our stockholders.
We believe these strategic initiatives will continue to generate sales growth, and allow us to focus on managing capital
and leveraging costs, to produce returns for our stockholders.
Our Stores
Typically, our stores are located at sites co-anchored by strong destination mass merchandisers and are in or near major
regional shopping centers. We are engaged in an ongoing expansion program, opening new stores in both new and existing
markets, and relocating existing stores. Store activity was as follows:
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