Market Focus: Toronto

Toronto

As the capital city of Ontario, Toronto has the largest population in Canada and the fourth largest in North America. Toronto is well-known for being a hub for the media, publishing, telecommunication and film production industries, but started its economic growth in the 19th century as a major port distribution. Since then, several industries have flourished within the marketplace.

Toronto is home to several leading independent pet retailers of all types and sizes. Taking a closer look, pet retailers within the marketplace have measured their success in Toronto based off of numerous factors including the distinctive neighborhoods, loyal and educated pet owners, and the simple fact that the marketplace is continuously growing year after year.

“What I love about Toronto in general is that we are a group of neighborhoods melding into one large city,” said Eva Eiduks with Furballs Pet Stuff. “Each neighborhood has its own distinctive 'flavor' and look. My customers are not only customers, but they are also neighbors and friends. They love and care for their pets. Their pets are part of their family. They are loyal, fun, interested and interesting—just like our neighborhood.”

Eiduks continued, “I find the customers I have do a lot of research and really use their knowledge and judgement to decide what is best for their pets. These days I have a lot of new pet owners, and they are so appreciative of the suggestions and knowledge that the Furballs staff have. In terms of buying for the store, the customers have access to information regarding new and interesting items and will often ask for the latest product on how to make their pet happy, healthy and busy! Although we are all going through this terrible pandemic, I still think the future looks bright every time I see a customer or deliver something for their pets. Life

during those times seems a little more normal.”

Retailers such as Furball Pet Stuff have been able to thrive in the pet industry due to marketplaces like Toronto that continue to present them with ample opportunities for growth, expansion and success. The unique, diverse population of pet owners seek the best for their pets and leading retailers in the marketplace ensure they are able to.

Bark & Fitz

Bark & Fitz has many locations throughout Canada, and strives to only carry high-quality, premium products for pets and their owners. Bark & Fitz also offers grooming services and several solutions for pets with dietary restrictions, behavioral and training problems. The company has 19 locations and has become one of the leading pet retailers within Toronto.

“Toronto is a world class, high growth marketplace and host to a dog population of a quarter million and growing,” said Garry Millage, President of Bark & Fitz. “Owners are increasingly seeking out high-quality products and boutique shopping experiences, which falls uniquely into the business model of Bark & Fitz.”

“Pet owners are increasingly treating their pets as members of their family, whether they are with or without children,” Millage continued. “In general families are eating healthier and gravitating to healthier lifestyles. As part of the family 'unit' pets are being introduced to the same lifestyle choices. Owners are educated on the needs of their pets and expect their local pet shop to be able to provide them with a knowledge-based shopping experience for their pet. From food and treat selections through to environmental needs such as leashes, safety harnesses, coats and health care products. The local store owner becomes a trusted partner in the well-being of the family pet.”

“Bark & Fitz is continuing its growth plans in order to continue to make our boutique shopping experience more widely available throughout the city and is welcoming all parties interested in developing a franchise store,” he added. “We are currently testing home. Delivery in several locations and we offer a wide range of products through our e-commerce site for those that are not able to get to a store. Inventory is very important, and we have made special provisions to ensure our stores are well-stocked and price protected in the face of the global supply issues that all retailers are not being subjected to.”

Big Al’s

Big Al’s is known for being its strong e-commerce presence, but the company has had a large brick-and-mortar footprint for more than 35 years. The company focuses on serving a niche market: aquarium supplies. The company carries everything from pond supplies to pet food and accessories. Big Al’s is dedicated to providing the best products to pet owners at a competitive price. r Cont'd on Pg. 16

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The retailer has approximately 14 locations throughout Canada. With its e-commerce division starting in 1999, the company was able to offer customers great discounts without sacrificing its large product selection. Big Al’s has grown from its original 10,000 squarefoot warehouse in 1999 to a more than 100,000 squarefoot distribution center, which allows the company to stock more than $4 million in inventory including more than 11,000 aquatic products from more than 100 different manufacturers giving customers a wide range of options.

Freedom Pet Supplies

John and Kelly Ayre started Freedom Pet Supplies (FPS) in 2001. Soon after, the couple went to the PIJAC National Tradeshow in Toronto to start their journey in the pet industry. FPS started in a 15,000 square-foot warehouse, and with a mission of being a successful sales and marketing company that specializes in high-quality distribution. Today, FPS works out of a 120,000 square-foot facility, has more than 100 employees and is focused on improving its business such as adding more delivery trucks, working to become carbon neutral and expanding its freezer sections. Throughout the years, FPS has continued to invest back into the company in order to ensure its partners, employees and consumers are well taken care of. The company puts its employees and partners at the heart of everything it does, as FPS believes ‘they are the heart and soul’ of the business.

Minor Bros Country Living

Minor Bros Country Living has seven locations and has always been a family-owned and operated agricultural business. The company started in 1964, and ‘Grandpa Wayne’ was the man behind the counter when the company first started. According to the company, Wayne can still be found around the retailer’s head office. Wayne’s son, Tim Minor, currently owns and operates the company. The staff is dedicated to producing high-quality feeds for all life stages of a wide range of animals.

When Minor Bros Country Living started, the location was 150 years old and needed major repairs, which occurred from 1967 to 1973. Since then, the company has opened several stores over the years, remodeled others and expanded its online presence. The company has kept its close family ties at the center of everything they do. In 2018, a new head office and warehouse building was built since the company had immensely grown.

Pet Valu

Pet Valu has more than 600 stores across Canada, which consists of several banners: Pet Valu, Bosley’s by Pet Valu, Total Pet and Tisol Pet Nutrition & Supply. For more than 40 years, the company has provided pets with all they require to live happy, active and long lives. The company has become the largest small format pet specialty retailer with many of its stores locally-owned and operated.

“Toronto is the largest and most diverse city in Canada, which represents our Devoted Pet Lovers (DPLs) most broadly,” said Tanbir Grover, Chief Marketing and Digital Officer. “With its strong diverse population and growth projections in both people and pets, it represents an ideal market for Pet Valu. This is also a market that is invested in their pets and their healthy lifestyle, which aligns with our brand and promise. Moreover, we are also able to localize our product assortment based on that diversity and serve DPLs with products that meet their specific needs while reaching them in whatever shopping way they choose.”

“The Canadian pet market can be broadly segmented into three primary customer segments: Devoted Pet Lovers, Pragmatic Pet Owners and Indulgent Pet Owners,” said Grover. “Devoted Pet Lovers are the most-discerning segment—they love their pets, treat them as family, and make less price-sensitive purchase decisions. This audience typically spends more than $900 annually on average, and also expects high-quality service and products, which makes us a top destination for these pet owners.” Similar to several other pet retailers, Grover mentioned the uptick in pet adoptions led to an increase in sales. “One distinctive trend we have seen was the increased amount

“Toronto is a world class, high growth marketplace and host to a dog of people who began to population of a quarter million and growing. Owners are increasingly adopt pets once the iniseeking out high-quality products and boutique shopping experiences, tial period of uncertainty which falls uniquely into the business model of Bark & Fitz.” began to loosen up sur— Garry Millage, President, Bark & Fitz rounding the Covid-19 pandemic,” he said. “The increased adoption rates resulted in a significant lift in sales, and also interest in pet care among pet owners. What we see going forward is a continuation of care for Covid-generation pets for the next 10+ years during their lifecycles, and we look forward to being the provider for our Devoted Pet Lover’s pet food and supplies for years to come.” The company has noted numerous avenues for opportunities and growth throughout Canada but has a preference for smaller towns and neighborhoods. “We see more than 600 opportunities for new stores across Canada over the long-term, driven by our unique ability to enter all types of markets—from urban cities to small Canadian towns,” he added. “As we work to execute this expansion plan, we can expect a significant portion of these openings will be in the Toronto market. We recently established a leading position in omnichannel for Canadian pet retail by linking our 'Just-around-the-corner’ retail network with our fully transactional ecommerce website. Our ‘Shop Ahead’ model is now evolving into a fully integrated 'Click and Collect' that allows our DPLs to buy online, then pick up in any of our locations when it’s most convenient to them. Earlier this year we also finished rolling out a nationwide direct-to-customer ecommerce capability—shipping directly to customers’ homes from our warehouses in Vancouver, Calgary and Mississauga—covering all 10 provinces and bringing more convenience to our DPLs as they shop. We will continue to focus on delivering a world class DPL experience that will not only benefit Toronto but all Canadians coast to coast.”