Pet Retail Franchise Pet Supplies Plus Breaks into New Regions in First Half of 2016
High Demand for Pet Products and Services Lays Groundwork for Strong Q1, Q2 Growth
July 12, 2016 // Franchising.com // LIVONIA, Mich. – The first six months of 2016 have yielded continued growth for Pet Supplies Plus, following a robust 2015 that featured 26 total franchise deals for 36 units. Since the start of the New Year, the nation’s largest pet franchise has already inked nearly 20 deals across the country resulting in 55 new stores – 19 more than the 2015 year-end total. This accelerated growth is also coupled with the news that Pet Supplies Plus is happy to announce entry into three new states – California, Colorado and Oklahoma – and is furthering its expansion in the states of New Jersey, Texas, Missouri, Iowa and Georgia.
For Pet Supplies Plus, the deals in Oklahoma, Colorado and California mark the first signs of growth in territories in Western United States. The pet store also recently locked in a 10-unit deal in Kansas City, marking its first presence in the city. In total, Pet Supplies Plus is on target to open approximately 60 new stores by the end of the year.
“Consumers pumped more than $60 billion into the pet industry by the close of 2015, $2 billion more than 2014. With the spending came a drastic need for an increase in pet products and supplies stores across the United States,” said David Leonardo, senior vice president for franchising at Pet Supplies Plus. “The steady growth of the pet industry is credited to cognizant pet owners looking for natural products for their pets and an increase in the amount of households with pets, which is now roughly 75 percent of the country. Pet Supplies Plus’ growth is exceeding that of the industry and on track to open 55 locations this year, a record year for the company.”
In late May, Pet Supplies Plus closed deals of 15 stores in Texas and three units in New Jersey – states where the pet retail store already has a significant presence. In June Pet Supplies Plus also inked a 10-unit deal in Kansas City and signed agreements for the new markets of Colorado (Denver), Iowa and Oklahoma.
To help accelerate the growth and expansion out west, Pet Supplies Plus will be converting several Pet Extreme stores in California to Pet Supplies Plus establishments after acquiring the California-based 10-unit pet retail chain in the fourth quarter of 2015. The growth into new territories indicates an increase in new business owners and the expansion in active states is a result of current Pet Supplies Plus store owners saturating several in-state markets.
“The expansion into new markets and growth in existing markets shows the positive influence of Pet Supplies Plus throughout the country,” Leonardo said. “We are excited to bring the people of California, Iowa, Georgia, Oklahoma, Missouri, Colorado, New Jersey and Texas quality products and an educational experience on how to best care for their pets. After acquiring Pet Extreme in California, we’re also looking forward to rebranding and remodeling the stores to demonstrate the consistent, dependable Pet Supplies Plus name to our new neighbors.”
Last year, Pet Supplies Plus announced a reduction of royalty fees from 4 percent to 2 percent for the first 12 months of a new franchise agreement. Following a franchisee’s first year, the royalty fee remains at 3 percent for the life of the franchise agreement. The reduction opens the franchise opportunity to a broader range of candidates and helps qualified candidates open stores at a faster rate. Pet Supplies Plus has also attracted franchisee candidates from different industries, including QSR food brands and grocers seeking to expand their portfolios into the pet retail space.
About Pet Supplies Plus
With more than 360 locations in 27 states, Pet Supplies Plus has earned the reputation as America’s Favorite Neighborhood Pet Store by offering a wide array of pet food, pet products, grooming services and animal expertise in a welcoming environment. With a friendly, pet-centered culture, where store managers and associates actually know the names of hundreds of their pet customers and their pet parents, each Pet Supplies Plus store is large enough to house a broad selection of food and equipment, yet small enough to still feel neighborly. Headquartered in Livonia, Michigan, Pet Supplies Plus earned its success by understanding the unique bond between humans and their pets, while championing the conviction that ‘People Don’t Own Pets, Pets Own People.’ Pet Supplies Plus is ranked in Entrepreneur magazine’s 35th Annual Franchise 500® list as the Top Full-Service Pet Supplies Franchise for its exceptional performance in areas including financial strength and stability, growth rate and system size. For more information about Pet Supplies Plus franchising opportunities, visit www.petsuppliesplus.com/franchise or contact Steve Olson, Director of Franchise Sales, at 734-793-6532.
SOURCE Pet Supplies Plus
Fishman Public Relations