Nordic pet retailer Musti Group grows by 20%
The pet retailer active in Sweden, Norway and Finland records net sales of €340.9 million ($383.8M).
“During the financial year our sales grew by 20%, gained market share in all markets, acquired a record number of new customers, including the parents of more than 50% of new puppies welcomed into families, and did so while increasing our gross margin,” CEO David Rönnberg shares.
- Musti saw its customer base grow to 1.3 million customers (an increase of 13%).
- The retailer currently has 312 stores (134 in Finland, 128 in Sweden and 50 in Norway).
- Online sales now represent 23.1% of total sales
Nordic pet maket
Musti Group feels its in a good position to continue winning new customers from the Nordic pet pool of 5.4 million pets. The increase in pet adoption will continue to be an opportunity for growth in the coming years.
To capitalize on the market, Musti has invested more into the early stages of the pet parenting journey with, for example, their novel puppy and kitten clubs.
Share of wallet
Growing the share of wallet within their base of 1.3 million loyal customers is another clear opportunity for Musti Group.
“There is significant upside from educating Pet Parents about the nutritional benefits of premium food and encouraging them to conduct most of their pet related purchases at Musti Group. To widen our reach and further deepen the engagement of our customers, Musti is developing an ecosystem approach for Nordic Pet Parents targeting further increase in spend and customer loyalty.”
During the financial year 2021, they increased the average spend per loyal customer by 5% to €188.3 ($212).
Own and exclusive brands
A core element of Musti’s strategy is growing the share of sales of own and exclusive products sold only in Musti Group’s channels. Own and exclusive brands typically have 10-15 percentage points higher gross margins compared to global brands.
“During the year, we increased the share of own and exclusive products to 51% of all products. This was a large factor in our gross margin increase to 45.7%, compared to 43.8%.”
An example of how Musti pursues this strategy is its exclusive partnership with VAFO for the Swedish market. Or the investment in a pet food factory in Finland earlier this year.