Pets at Home profits will beat guidance, but cautions on year to come

Pets at Home, designated an ‘essential’ retailer during the outbreak and therefore able to keep shops open, reported in a post-close update that it traded in line with expectations during the final quarter of the financial year. The retailer said in the closing weeks, demand was “exceptional” in-store and online as the coronavirus emergency unfolded.

Existing customers increased their average basket size by pulling forward purchases and the retailer drew in new shoppers seeking its products and services.

Pets at Home has shut its Groom Room pet salons. Its First Opinion vets’ practices and referral centres are still open but sales are expected to be lower during the period of disruption. The retailer said: “This, together with the likelihood of lower store revenues resulting from other necessary measures we have implemented, is expected to have a negative impact on our normal levels of turnover as we start the new financial year.”

Chief executive Peter Pritchard said: “While full-year [2019/20] has undoubtedly ended strongly during this unprecedented time, the period ahead is uncertain for us all and Pets At Home will not be immune to these challenges that we collectively face.

“I am extremely grateful that our colleagues and operations have shown such resilience and flexibility to meet the recent exceptional level of demand from both existing and new customers. As ever in difficult times, consumers turn to trusted brands and advice, and that is why we are working tirelessly to ensure that we continue to provide essential products and healthcare services for the UK’s pets. 

“The health and safety of our colleagues, partners, suppliers, customers and pets remain our top priority. We continue to take all appropriate action in line with government advice and remain vigilant to the potential impact of Covid-19 as we start the new financial year.”

The retailer is providing £1.1m of funding to pet charities, has created a £1m crisis fund for employees and is offering discounts to NHS staff.