As I’m feeding Bailey breakfast this morning and half listening to CNBC, I immediately perked up when I heard that Credit Suisse upgraded Petsmart today because they think that pet owners are not going to cut back on spending for their pets. Are they kidding me? Consumer spending is down and people are giving up their pets because they can't afford them or they lost their home.
I did a little research. Half of Petsmart’s revenue is from consumables, food & treats. (YUK, that chemical filled processed food is half their income.) And it seems they have increased the cost of services that have remained constant like grooming and veterinary care so they predict that is going to offset the softening sales of discretionary items. On paper that looks good, maybe, but the jury is out on this one.
Are you cutting back on spending for your dog? Let me know.
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