The Petshop: more stores, more services and more countries

The Petshop posted double-digit growth in 2023 and forecasts an increase in revenue of between 15% to 20% in 2024.

Continuing this optimistic trend, the pet retailer from the United Arab Emirates (UAE) expects to open between 3 and 5 new stores in Dubai, Ras Al Khaimah and Sharjah this year. This will add to its current 8 locations, 3 of which were recently opened in 2023, including Abu Dhabi’s largest pet store.

The company, which was acquired in 2022, also plans to kick-start its international expansion by entering Saudi Arabia and Qatar between Q4 2024 and Q1 2025.

According to CEO Amr Hazem, both markets were chosen for being “developed,” having “decent income per capita,”and witnessing “increasing pet penetration.” “It’s also in the GCC, which is our playground,” he noted in an interview with GlobalPETS.

Food and accessories

Pet food accounted for most of The Petshop’s sales last year. The pet retailer observed a consumer shift from commercial kibble to specialty kibble and even raw food.

The popularity of accessories also increased among pet parents in the UAE. “Last year, we had a plan to drive accessories because we saw some sort of a gap in the market when it came to specialty products,” admits Hazem.

Additionally, luxury services, like day boarding, have been perceived as a necessity, which is swinging the market. Hazem warns the grooming sector is witnessing saturation.

More services

The Petshop underwent rebranding last year to bring all its offerings under one website and started an express delivery service to better meet consumer demands. “Now we’re doing some homework on rebranding and hope to introduce some new services to the market,” adds Hazem.

In February, the pet retailer launched a new daycare and boarding facility under sister company Petsville at its Dubai Investment Park location after witnessing a trend led by Dubai expats in increased spending ability and demand for pet daycare and boarding services.

The 20,000-square-foot facility—carved out of the 50,000-square-foot store in the same location and is currently the largest pet store in the Middle East—has been developed as an “ultra-luxury” Greek-themed center. It features the UAE’s first pet spa, chlorine-free outdoor pools, 100 pet hotel-like boarding rooms, indoor and outdoor play areas and dry fountains. This marks the 4th location for the company’s Petsville facilities.

Supply chain

GlobalPETS also learned that The Petshop plans to ink a pet food brand distribution deal for the regional market later in the year.

The pressures on the global supply chain from the war in Ukraine and Gaza are impacting the company’s shipments. “We have delays in some arrivals now as we speak. The shipping costs have gone up [double in many cases] for almost everyone, not just us,” notes Hazem.

Despite strong internal stock management, if the global pressures on the supply chain continue, Hazem warns of a potential cost impact on consumers.