If you’re thinking about starting a business in a large and growing market, the pet store industry is a good pick: In 2022, Americans spent $136 billion on their pets. Before you offer a down payment for a brick-and-mortar shop or reserve the URL for your ecommerce site, there are a few things you should know about becoming a retailer in the pet supply space.
3 types of pet supply stores
There are several options when it comes to what pet stores should look like. Understanding your goals, market demand, and the competitive landscape can help you choose the best path for your pet business. There are three primary types of pet supply stores:
1. Online
Starting your pet business on the internet may seem like the obvious choice, especially if you're in an area with high retail rent or low foot traffic. Some of the advantages of operating your business online include lower overhead costs (e.g., no storefront rent payments and potentially fewer employees), a larger potential customer base, and extended hours (since you have the capability to remain open 24/7). Downsides include difficulty attracting customers in a crowded online space, as well as logistical concerns such as shipping.
2. Brick-and-mortar store
Starting your own brick-and-mortar pet shop can be appealing for several reasons. A retail space offers customers the chance to compare pet products in person before buying them. Moreover, physical pet store spaces are great for hosting events, offering pet services such as grooming, and simply allowing people to bring their pets inside, which helps attract customers. The challenges of starting your own retail operation include building a customer base from scratch, and the costs associated with maintaining a physical location.
3. Franchise
If the thought of creating a brand and marketing it from scratch sounds intimidating, franchising an existing pet supply chain might be the way to go. Franchisees have the advantage of tapping into loyal customers, the brand recognition that comes with a popular pet store's name, and even pre-made storefront plans. If needed, you will also have the support of the franchisor.
However, acquiring a franchise involves a significant financial investment; you’ll be expected to declare your total net worth and total liquid assets, and to pay a significant initial fee.
How to open a pet supply store
- Conduct market research
- Build out your brand
- Create a business plan
- Check your legal boxes
- Secure a brick-and-mortar location
- Hire and train employees
- Choose suppliers
- Develop and implement marketing
- Establish an online presence
Before you can start selling pet toys and pet food, there are a few things to consider. Here are key steps to take to ensure your pet supply shop is as successful as possible.
1. Conduct market research
What types of pets will your store provide for? What is the competitive advantage you have over other businesses? What is the typical profit margin for pet supply stores similar to the one you want to open? These are all questions you should find the answers to before investing substantial time or money into your pet store venture. Free tools such as Google Trends can help you find information such as regions where certain pet supply search terms are most popular. You can also conduct your own data gathering through in-person or online surveys, interviews with potential customers, and focus groups.
2. Build out your brand
A good business name, logo, and catchy slogan can go a long way toward attracting customers and converting sales. Do some research and test out your choices on an audience before making them official. You can use Shopify’s free pet business name generator to find inspiration as you brainstorm names.
3. Create a business plan
Building out a written business plan that describes your pet supply store will help foster success in the long run by providing you with a clear roadmap. This plan should include items like your business’s mission statement, target market, organizational structure, and financial projections. Make sure to draft an executive summary, include the results of your market analysis, and provide an overview of your team.
4. Check your legal boxes
Follow state and local guidelines when setting up your company. You also may want to hire an accountant to oversee your finances, as well as human resources personnel if you have at least 10 employees, according to US Chamber of Commerce guidelines. Finally, pet supply stores are subject to regulations under the Animal Welfare Act and the US Department of Agriculture's Animal and Plant Health Inspection Service, so be sure to cross your T’s and dot your I’s. If you plan to sell pet food, you also may be required to obtain a Pet Food and Specialty Pet Food Registration.
5. Secure a brick-and-mortar location
If your business plan includes a physical storefront, finding and renting (or purchasing) that space is an important item on the to-do list. When choosing a retail location, look for a place that has high foot traffic, easy parking, and is near a central commercial hub. Even if your company is primarily focused on ecommerce, it can still be to your advantage to open a brick-and-mortar store.
6. Hire and train employees
Once you’ve selected your storefront, it’s time to consider hiring employees. Work up a budget based on your financial projections and any initial funding you have, and evaluate what you could responsibly spend on a store associate.
If you choose to hire, write up a job description detailing the role and the qualifications you’re looking for. Interview candidates and choose the best fit.
Once your employee starts, train them how to use your point-of-sale (POS) system (a cash register or digital app used to accept payment and log transactions) as well as any other necessary operational functions like restocking the shelves or providing customer service. If your pet supply store also includes grooming services, you’ll need to invest in training for your pet groomers.
7. Choose suppliers
When selecting suppliers, consider where the company is located relative to your business, compare shipping costs and transit times, and factor in sustainability and sourcing ethics. Before committing to a relationship with a supplier, request product samples and conduct product testing. You can even implement a trial period with a supplier and monitor their responsiveness and delivery, as well as the products’ popularity.
8. Develop and implement marketing
Get the word out about your new pet supply store by implementing a marketing strategy. You can work with a third-party marketing agency to deploy traditional marketing through media such as television and print advertisements, or you can rely on digital ads, which are generally more targetable and less expensive. If you have a brick-and-mortar storefront, use your space to host a grand opening event with promotions and brand collaborations with nearby businesses.
9. Establish an online presence
Even if you don’t plan to build out an ecommerce site to sell online, a website is necessary for potential customers to find information about your business. Moreover, popular social media platforms such as Facebook, Instagram, and Twitter are all great places to build your brand, promote events, advertise, and even drive sales conversions by getting people in the door. You can use templates to set up your own ecommerce store quickly and easily.
Costs involved in opening a pet supply store
Starting any business from scratch requires a good bit of investment. Here are some of the costs you should expect when opening your pet supply company:
- Market research. Whether you outsource your market research to a third-party firm or conduct it in house, this is a cost you will need to plan for.
- Marketing and branding. Digital or print marketing is an ongoing cost to contend with; be sure to keep a close eye on the overall return on investment of your marketing strategy.
- Overhead. Rent, utilities, taxes, business insurance, website domain fees are large and recurring business expenses you will need to factor into your overall budget.
- Payroll. Paying your employees (and yourself) is another recurring cost to keep in mind, especially as you grow and add new workers.
- Inventory. When selecting suppliers, consider product unit costs and potential bulk discounts, as well as shipping costs, payment terms, and return policies. Your inventory costs will also include holding costs—all the expenses related to renting or maintaining space where your inventory is stored.
How to open a pet supply store FAQ
Is selling pet supplies profitable?
Yes, the pet industry has seen consistent growth over the past few years and demand for pet supplies is strong.
Who is the target market of a pet supply store?
Pet owners are the primary target customers for a pet supply store. This includes new pet parents, as well as longtime animal lovers.
What kind of skills should pet store owners have?
Pet store business owners should have a strong understanding of the pet industry landscape, as well as business acumen and experience with all types of animals. They should also have a grasp of the realities of running a small retail company.
What are some critical considerations before opening a pet store?
Location (brick-and-mortar versus ecommerce), market competition, and budget are all important considerations to examine before starting your pet supply business.
What happens during a typical day at a pet supply store?
Responsibilities at a pet supply store include product receiving and stocking, customer service, sales, cleaning and sanitizing, and completing administrative tasks such as invoice or inventory paperwork.
