Higher Prices Are Masking Fewer Sales, Warns One Pet Indie

Editor’s note: Each month, we ask members of the PETS+ Brain Squad — our survey group of 1,100+ independent pet retailers and service providers — to share their thoughts on the pet industry. These “letters to the editor” are plentiful! We print as many as will fit in each issue’s Inbox, and even more run here on petsplusmag.com — like with this latest installment of From the PETS+ Inbox.

Victor Santucci of Garden State Pet Center in Audubon, NJ, had this to say about the state of independent pet retail:

“Independent pet retail is at a crossroads — and the industry needs to pay attention. As the owner of Garden State Pet Center, an independent holistic pet retailer in South Jersey, I believe our industry is facing one of its most challenging and transformative periods in recent years. Between declining customer traffic, increasing operating expenses, shifting consumer spending habits and the continued expansion of major online retailers, independent pet stores are being forced to rethink how they operate, compete and ultimately survive.

“One of my biggest concerns is that the pet industry continues to celebrate growth while many independent retailers are experiencing an entirely different reality. We frequently hear about the resilience of the pet industry, premiumization and consumers’ willingness to spend more on their animals. However, I believe we need to distinguish between growth driven by higher prices and actual growth in units sold, customer transactions and the financial health of independent retailers.

“At Garden State Pet Center, we have experienced declining transactions and softness in several traditional dog food and treat categories. Conversations I’ve had with other independent retailers suggest we aren’t alone. Consumers are becoming increasingly price-conscious, and even customers who recognize the benefits of premium nutrition are reconsidering their spending.

“Yet there are encouraging developments. Our cat category has demonstrated some of our strongest growth, particularly in premium wet foods and novel-protein diets. In September alone, we sold 67 units of RAWZ Rabbit Pâté, reflecting growing demand from cat owners seeking high-quality nutrition and alternative proteins for pets with dietary sensitivities. This reinforces something I’ve believed for years as a Certified Clinical Pet Nutritionist: Independent retailers must position themselves as trusted nutritional resources, not simply places that sell pet food.

“Customers can purchase a bag of food almost anywhere. What they cannot always find is someone willing to spend 30 minutes understanding their pet’s nutritional history, discussing ingredient sensitivities, explaining different feeding approaches and helping them make informed decisions. That expertise is our competitive advantage.

“Another issue I believe deserves significantly more attention is the relationship between manufacturers and independent retailers. Independent pet stores are often the businesses that introduce innovative brands to consumers. We dedicate shelf space, educate customers, invest in inventory, distribute samples and build trust in products long before those brands become household names.

“Unfortunately, we’ve seen brands build their reputations through independent retailers only to expand aggressively into mass-market distribution and major online marketplaces. I understand that manufacturers need to grow. However, growth should not come at the expense of the very retail partners who helped establish their brands. Independent retailers need more than occasional promotional discounts. We need meaningful partnerships, including competitive margins, protected distribution strategies, reliable inventory, consumer education, marketing support and loyalty programs that encourage customers to continue shopping locally. If independent pet retailers helped build your brand, we should remain part of your long-term growth strategy, not become an afterthought.

“We’ve also recently learned the importance of diversification. Following the closure of another local pet retailer, Garden State Pet Center experienced a tremendous increase in demand for live feeders and reptile supplies. We have welcomed customers who previously shopped elsewhere because they still need a reliable local source for essential products. Specialty retail categories can create substantial opportunities for independent businesses willing to serve underserved customer segments. Birds, reptiles, small mammals, specialty nutrition, grooming and educational services can help differentiate independent stores from businesses competing primarily on price and convenience.

“I would love to see PETS+ continue expanding its surveys of independent retailers, particularly around year-over-year transaction counts, units sold, category performance, gross margins, customer retention and the effects of online competition. Are retailers seeing genuine sales growth, or are higher average prices disguising declining purchase volumes? Are premium brands becoming less accessible to consumers? Are independent retailers losing customers to online competition, or are those customers simply purchasing less overall? Which categories are outperforming, and what strategies are successfully bringing customers back through the doors?

“Despite these challenges, I remain optimistic about the future of independent pet retail. We’re continuing to invest in our business, expand our specialty offerings, strengthen our nutritional services and pursue opportunities to serve additional South Jersey communities. We’re also committed to supporting local animal rescues, community organizations and police K-9 units. But optimism alone doesn’t pay the bills. Our industry needs manufacturers, distributors and trade organizations to recognize that independent retailers are experiencing genuine pressure. The future of independent pet retail should not be determined solely by who can sell a bag of dog food for the lowest price. It should be determined by who delivers the greatest value to pets, their owners and their communities.”