Furrari Dog Crates Article

Ettore's comment exemplifies the thinking of many mass market executives.

Pet supplies have also long been a core category at Wal-Mart, commanding a perimeter location in the front of the store. Caldor offers a full array of higher-margin supplies, such as dog houses and animal toys, in addition to pet food.

Pet owners are important customers to cultivate. According to research from the American Pet Products Manufacturers Association in conjunction with NFO Research, more than 56% of . households currently have pets. Dogs alone number 54 million in the United States

The number of pets owned per household is on the rise. Today Americans own a total of 236 million dogs, cats, birds, small animals, fish and reptiles.

Those who own pets are also likely to be the kind of customers mass marketers are coveting. The average pet owner is married, lives in a house and is under 50. On average, annual household income exceeds $30,000.

Pet sales hit $ billion in all mass outlets last year, up from $ billion in 1993. Pet food sales rose in the nation's discount stores by almost 2%, according to IRI. Growth outpaced such categories as lawn & garden and housewares.

Discount stores enjoy strong sales in all pet categories. They account for 25% of dog food sales, up from 17% in '93. Discounters ring up 47% of pet toy sales. Discount store share amounts to 47% in the pet brush and grooming categories.

While pet food may be the item that draws customers into stores on a regular basis, many purchase accessories as well.

More than 62% of dog owners say they buy gifts for their pets--especially at Christmas. Forty-five percent of cat owners and 37% of bird owners say they do the same.

These customers are in the market for everything from dry dog food to rawhide chews and traveling cages.

Accessories are pulling 30% to 35% margins at discount stores, almost twice that of pet foods.

Manufacturers of pet toys and rawhide products have narrowed their price structure, focusing on best-selling items at entry and higher level tickets. There's a real shifting of pricing going on. Consumers are either willing to pay more for premium products or are shopping on price only," says Mark Johnson, vice president of marketing at Hartz Mountain. "The middle ground is dropping out," he says.

Among the pet items typically purchased are:

* Dry dog food, 85%

* Semi-moist dog food, 10%

* Flea/tick products, 70%

* Toys, 43%

* Wormers, 31%

* Vitamins, 9%

* Leashes, 91%

*Brushes/grooming, 84%

* Books/pamphlets, 42%

* Rawhide chews, 51%

* Beds, 45%

* Cage/traveling crates, 24%

And to get these items into the stores, manufacturers are developing merchandising vehicles, such as clip strips, which allow retailers to make the most of their limited floor space.

Discount stores that carry high-end niche items may attract those customers who are willing to pay a bit more to avoid the crowds at pet superstores. "I think there's a real opportunity in the marketplace for high-end niche products, whether it's in super-premium foods or natural, botanical products for pets," says Doug Jones, brand manager for Mr. Christal's Inc., a company that makes a natural-based flea shampoo. Jones says he also sees tremendous growth in skin and coat conditioning products, a trend that is trickling down from pet stores and veterinarians.

Hartz Mountain also recently launched a flea and tick control product this summer that is the first line of this type available at mass merchants. It takes a systematic approach to insect control and includes insect growth regulators, a hormone previously available only through vet's offices.

Michelle Meister, marketing manager at Doskocil Manufacturing Co., also has seen a trend toward "top-shelf" merchandise in discount stores. "These items are providing them with opportunities for greater profit margins as well as responding to their consumers' demands for such products."

Among Doskocil's products are the Vari-Kennel, a family of high-impact plastic carriers. The firm is also introducing this month the BarkHouse dog house. It features thick insulated walls, adjustable rear ventilation and an easy to clean interior.

Finding Space for Pet Carriers

As retailers expand their pet product assortments, they have come up with innovative displays that assist in getting more product onto the floor. Products such as pet travel cases are being merchandised on top of gondolas to make use of dead air space.

Manufacturers such as Doskocil are assisting by offering products that can "nest" inside of each other.

Pet carriers are among the fastest growing segments in pet supplies at Kmart. "People use them for not only travel, but to contain pets during the day when they can't be there," a company spokesman explains.

Wal-Mart is so confident about carriers that it stocks several in its pet departments including the DogLoo, Petmate's Pet Porter and Pet Taxi and the Cat Lodge.

Wal-Mart not only uses space on top of gondolas, but also affixes cardboard carriers on clip strips near pet food and accessories. Prices range from $ for cardboard carriers to $ for a plastic model.

NFO research bears out the fact that carriers are growing in importance. The study finds that beds and carriers tend to be purchased more often at discount stores than products such as food, treats or chews.

RELATED ARTICLE: A Category Killer's Approach

While Caldor only carries one brand of pet carriers, Petco, one of the leading pet category killers, stocks four in 18 different sizes and styles.

Just as Toys "R" Us has come to prominence in the toy category and The Home Depot in the hardware business, superstores like Petco have made similar inroads in pet.

Within the pet carrier category, Petco's breadth and depth of assortment is clearly visible.

For example, a Petco unit in Totowa, ., stocks small through giant Vari-Kennels by Doskocil priced from $ to $. Petco also stocks the Kennel Cab II by Doskocil. There is also a medium through giant version of the Furrari by Dogloo priced from $ to $.

In dog houses, Petco offers the Dogloo Ruff Hauz priced from $ to $. It also stocks a Doskocil dog house for $.

Says a spokesman for Petco, "We have to have a wide assortment of dog houses and travel carriers because people think of us first when in the market for any pet need."

Petco also has hundreds of linear feet of dog food including the new upscale options, as well as chews, rawhides, leashes and grooming products.

RELATED ARTICLE: Unlocking the cage and traveling crate market

About one-fourth of dog owners have a cage or traveling crate for their dog. Small dogs are actually more likely to have a crate. Plastic is the most popular material for small dogs. Plastic and metal are preferred by large dog owners.

Almost one-half of those surveyed have a dog bed.

Approximately one-third of cat owners presently have a cage for their cat. The large majority of cat cages are plastic.

HAVE CAGE OR TRAVELING CASE

 24% 18%
1994 1992

TYPE OF MATERIAL

 1994 1992
PLASTIC 67% 51%
METAL WIRE 41% 56%
WOOD 1% 1%

PET OWNERSHIP

% of households with pets

 Any Pet 56%
 Dogs 36%
 Cats 30%
Freshwater Fish 11%
 Birds 6%
 Small Animals 5%
 Reptiles 3%
 Marine Fish 1%

Size of Dogs

43% of all dogs owned are small dogs

35% are medium dogs

41% are large dogs

Source: NFO/American Pet Products Manufacturers Association.

Where Dog Products are Purchased

 GROCERY STORE DISCOUNT STORE FEED STORE PET
 STORE
DOG FOOD 67% 24% 10% 7%
FLEA/TICK
PRODUCTS 31% 35% 3% 8%
TOYS 33% 47% 3% 20%
LEASHES 15% 45% 2% 22%
CAGE/TRAVELING
CRATES 2% 31% 3% 21%

This category update was sponsored by Doskocil Manufacturing Co., and produced by Discount Store News