Pets at Home considers workforce cut to streamline store operations

Pets at Home is in the process of restructuring in-store roles amid speculation of a private equity (PE) takeover.

The retailer, which has more than 450 stores across the UK and 140 standalone vets, has confirmed that 2,400 roles across its portfolio have entered into a consultation process to streamline how its stores are operated.

Significant growth

“Pets at Home has grown significantly over the past few years to become the UK’s leading pet care business. As we have been through this growth, we still have some legacy ways of working which don’t match the business we are today,” a company spokesperson says.

“To be clear, this is not an exercise based around reducing headcount. It is a process to make ourselves fit for the future.”

The company’s latest earnings report shows £468 million ($604M/€560M) in revenue for Q3 FY2025 and 5% growth in its subscription Pets Club membership to 8.2 million. The firm expects modest growth in profit before tax against “a still subdued consumer backdrop.”

Streamlined management

The drive to streamline operations will focus on roles that are no longer consistent with current trading practices.

“As part of the restructure, we will be streamlining the number of retail management and store colleague roles and are reviewing a number of allowances colleagues had previously been paid in addition to their base salary,” the spokesperson adds.

While any potential job losses are concerning for staff, Pets at Home says that for those who remain with the company, it is actively seeking to improve conditions and wages.

“We are continuing to invest in our colleagues; alongside the restructure, we are investing £7 million ($9M/€8.4M) in hourly pay for colleagues. We will also be investing £2 million ($2.6M/€2.4M) to deliver training over the next year to ensure colleagues can continue to learn and develop additional skills to provide customer service and experiences that truly set us apart in pet care,” the spokesperson says.

Trading costs

The pet retailer is not alone in looking for ways to streamline amid more challenging trading conditions and the UK government’s increase in employers’ national insurance payments, which take effect next month.

“Ultimately, whilst our structure will look slightly different and this is a transition from legacy ways of working, what is not changing is our commitment to our people and to our customers,” the company spokesperson concludes.

Takeover speculation

Recent speculation has suggested that Pets at Home could be a target for takeover by a PE firm.

Various media outlets have reported on the formation of a company called Pug Bidco, listed on an official database at the same address as PE firm BC Partners, which also owns the major US retailer PetSmart alongside Apollo Global Management.

Pets at Home has been publicly listed since 2014 but has previously attracted private equity backing. In 2004, it was acquired by Bridgepoint Capital and then sold to KKR in 2010.