Petz Group expands its digital and physical footprint
More than half of the Brazilian pet retailer’s stores are now located outside São Paulo state.
Brazilian pet retailer Petz Group posted gross revenue of R$912.9 million ($184.3M/€166.8M) in the first 3 months of 2023, an increase of 22.3% against the same period of 2022.
The report also detailed a profit increase of 19.5%, reaching R$363.5 million ($73.3M/€66.4M).
From January to March, Petz Group opened 3 new stores in Bento Gonçalves (Rio Grande do Sul) and Várzea Grande (Mato Grosso), taking the total number to 220 locations. More than half of the stores are located outside of São Paulo, when in the same period of 2022, they represented 46%.
The retailer told investors it is on track to open between 30 and 40 new stores in 2023.
Digital expansion
As much as 7 out of 10 purchases are done through the retailer’s app, following the same trend as last year.
The company said there has been “stabilization in digital penetration” over the past 2 quarters, and it has more than 1 million active users as of March 2023.
The retailer’s online revenue accounted for R$306 million ($61.6M/€55.9M) in Q1 2023. In the same period of 2022, it hit R$220 million ($44.2M/€40.1M).
Petz has 380,000 members as of Q1 2023, representing 29% of its standalone gross revenue in March 2023.
Below expectations?
Gross revenue from acquisitions such as the dog accessory and pet food brand Zee.dog.com dropped “below expectations,” totaling R$52.5 million ($10.6M/€9.59M). This is a 2.8% decline.
The company attributed the decrease to inflation and the current macroeconomic environment.
However, Petz’s other acquisition, a market leader in dog pads Petix, was “in line with the amount at 4Q22,” as gross revenue totaled R$37.4 million ($7.55M/€6.83M).
As of April, the company launched a new commercial strategy hoping to build “the necessary foundations” for Petix International, both in the production line and in terms of brand positioning.
Sustainability
According to Petz’s CEO, Sérgio Zimerman, the company aims “to maintain levels of competitiveness and investments” in building the ecosystem and consolidating the business in Brazil.
In an interview with PETS International in 2022, Zimerman said that Petz is focusing on expanding over the next 3 to 4 years.
The retailer’s leader added that the company’s sustainability agenda has “advanced significantly through the first few months of the year.” Petz is also in the final process of measuring the impact of its daily operations with regard to greenhouse emissions.
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