Pets at Home said sales growth was restrained to less than 6% in the first half of its financial year, as the switch to a single distribution centre created shortfalls in availability.
Interim results for the 28-week period to October 12, 2023, show that retail revenue grew by 5.2% during the period, with total consumer revenue, which includes all sales in the group’s veterinary division, exceeding £1 billion with growth of 8.6%.
Following first quarter sales growth of 7.1%, availability fell from the normal levels of around 95%, to nearer 80% as the group’s new Stafford distribution centre came online, causing like-for -like growth to dip to 2.7% in the second quarter.
The impact was “contained and swiftly corrected”, says the company, with availability having “normalised” and LFL sales in the early weeks of the third quarter showing 4% growth.
The centre is now fulfilling deliveries to all stores, with online operations to move across shortly and the transition away from all old distribution centres to be completed by mid-2024.
During the half-year, Pets at Home opened three new stores and four new groomers, taking the total beyond 450 pet care centres. The group also completed 24 refits during the period, and saw own-brand sales grow by 18%, boosted by the introduction of a new own-brand freeze-dried range.
It has also agreed terms for exclusive distribution of freshly-cooked dog food from Butternut Box in the New Year, the company revealed. Membership of the chain’s VIP scheme grew by 3% year-on-year to 7.8 million.
Lyssa McGowan, Pets at Home’s chief executive, said: “H1 has been a critical period in laying the foundations of our platform for future growth. This was the period of high activity when we relaunched our brand, launched our new DC, built our new digital platform, and made progress expanding and improving our physical assets across retail and rets.
“This period has not been without challenges, but we have been able to manage these well and are on track to finish FY24 with a refreshed, modernised infrastructure, fit to deliver growth for many years to come.”
