Analysis: How Walmart’s new pet center can shake up the pet retailing industry

Walmart has recently made headlines as it announced the opening of its first pet services center in Dallas (Georgia). America’s biggest retail corporation’s decision will directly impact the local pet industry.

GlobalPETS asked for more details on this bold business step from Walmart, a marketing firm and a business engagement manager. 

A “natural” step?

Walmart explains to GlobalPETS that the main reason for opening this new pet care service center is to fight for essential but often expensive pet services. “We saw an opportunity to solve this problem for our customers, enabling them to save valuable time, money and effort,” says a spokesperson for the company.

This new center will complement the 65 Walmart stores across the US that already offer vet services and veterinary medication. The company believes these new centers are the next “natural” step.

Danny Zhang from Oliver Wyman’s retail and consumer goods practice believes that Walmart’s new one-stop pet store concept is what the majority of US customers want. “Consumers are looking for convenience, quality, and price in a seamless, omnichannel environment,” he says. 

Huge visibility

Stefan Hartung, Executive Creative Director at the strategic creative agency Kick, notes that the new pet care service center is a great concept and follows some similar trends, such as the recent opening of Amazon Clinic, a virtual health service for those aged 18 to 64. “People don’t want to wait for traditional slow offerings. They want it now and where they are,” Hartung admits. 

The fact that this center is separate from the big retail locations that Walmart has across the country can also make it more attractive to customers. “Having a separate entrance and storefront is following similar, successful predecessors like PetSmart,” points out Hartung.

He further notes the locations heighten “the immediate visibility from the parking lot and allow for quick access.” Furthermore, the branding also aligns with Walmart’s “consistent identity structure, being clear and on brand.”

According to the American Pet Products Association (APPA), the expenditure on pet supplies in the US reached $136.8 billion (€130.1B) in 2022. This marks 10.6% in growth since 2021 ($123.6B/€117.6B).

Why Georgia?

Walmart has a higher store count in Texas—a state home to over 600 stores—and Florida with nearly 400, whereas Georgia has 215 as of March 2023.

The retailer recalls that Dallas was also the location of Walmart Health in 2019. “Opening the first Pet Services center in the same location was a natural decision to create a one-stop destination that supports the wellness and care of the entire family,” says a spokesperson.

The location also allows the retail giant to assess how best to work with its partners and optimize services to ensure “quality, affordability and accessibility.”

Walmart declined to specify the exact timeline of when other pet service locations will open but says they are “looking forward to bringing the offering to more of the communities [they] serve in the near future.”  

Following Walmart’s footsteps 

Danny Zhang from Oliver Wyman acknowledges that this move has “the potential to impact pet specialty retailers the most as well as online retail players.

The analyst predicts that other retailers might follow with similar retailing initiatives specifically targeting pet parents. “There is an overall trend of additional focus on health and wellness in broader retail, so I would not be surprised if other players also look to add pet services in the future as well.”

Zhang points out that many pet specialty retailers are naturally also looking to focus more on their strategies in the pet industry, whether in the form of partnerships or even in their branding. 

“PetSmart is already partnered and often co-located with Banfield Pet Hospitals, and Petco has rebranded as Petco Health & Wellness Company,” he notes.