Special Report: Pet Supermarket

Pet Supermarket has more than 200 locations in 10 states with select locations featuring self-service dog washing stations, grooming and adoption services along with VIP Petcare assistance. Pet Supermarket stocks more than 8,000 high-quality products and supplies such as premium pet food, toys, health and wellness items for a wide variety of animals. The company was part of Pet Retail Brands from 2016 to 2021 when it legally separated from Pet Valu and resumed independent operations.

Pet Supermarket was founded in 1973 by Charles West Jr., and was originally operated as Pet Circus until 1986 when the named changed to Pet Supermarket. Over the years, Pet Supermarket continued to steadily grow. In 2004, the company opened its 98th store in Ohio, which coincided as its first location in the state. At the time, the vice president, Steve Feinberg, mentioned the company had plans to add nearly 15 percent to its store count every year. Media officials reported the company planned to focus on the Southeast and Ohio markets at the time.

Pet Supermarket has continued to stay ahead of trends and consumer demands. One way the company achieved this goal was in 2009 when Pet Supermarket launched its first e-commerce site. The website featured more than 3,000 SKUs of toys, high-quality food options and various pet products.

By 2014, the company had opened its 150th location in Bartow, FL. At the time of the opening, Florida was home to more than 100 Pet Supermarket locations. Diane Holtz, Pet Supermarket’s President and CEO at the time told officials in media reports, “Our continued expansions and store openings is not only a reflection of our corporate team but also our dedicated associates, vendor relationships and organizations that have provided support.”

According to reports, Pet Supermarket had focused on purchasing or leading spaces that were 7,500 square feet with a higher trafficked area and good walkability to ensure business.

Pet Retail Brands was formed in 2016 through the combination of Pet Valu and Pet Supermarket. Pet Retail Brands became North America’s third-largest pet retailer and the largest small format, local pet specialty shop as a result of this transaction. At the time of the merger, Pet Supermarket had 165 stores and employed approximately 2,257 associates. According to media reports, the company was planning to add 10 to 20 stores within the same year and up to 35 locations in the future.

Pet Valu was bought by a Roark Capital affiliate in 2009, and in 2016, Pet Supermarket was also acquired. At the time of the merger, the newly formed company was expected to generate approximately $1 billion in retail sales across the US and Canada.

Under Pet Retail Brands there were several banners: Bosley’s, Paulmac’s, Pet Valu, Pet Supermarket, Tisol and Total Pet. The companies each had a goal to expand their footprints through strategic planning and looking for opportunities to grow.

“The combination of these two highly complementary businesses, both long-established brands with strong cultures and deep commitments to local communities and helping pets, will create the leading community-focused pet specialty retailer in North America,” Ezra Field, Managing Director of Roark r Cont'd on Pg. 4

r From Pg. 2 Capital, said at the time. “Together, both brands will benefit by sharing infrastructure, resources and best practices to deliver superb value to both Pet Valu and Pet Supermarket’s loyal customers, committed employees and business partners.”

During the merger, Pet Supermarket’s Holtz announced her retirement from the company.

“My 23-year journey with Pet Supermarket is filled with wonderful memories of our passionate team that ranks among the best and brightest in pet retail,” said Holtz. “I retire knowing this transaction positions Pet Supermarket for continued success on behalf of all its employees and partners. I am grateful for the support and guidance of the Roark Capital team and look forward to seeing Pet Supermarket continue to grow and delight pets and pet parents.”

At the end of 2020, Pet Valu closed all 385 of its pet retail stores in the US due to the pandemic. According to media reports, the select Pet Valu stores were acquired by Pet Supplies Plus following the closures. Pet Supplies Plus told media officials, “I would like to extend gratitude to the Pet Valu team, who have been nothing but professional and supportive throughout this entire process,” said Nick Russo, SVP of Franchising and Stores. “This exemplifies the type of culture Pet Valu has developed, and we are excited to offer many Pet Valu associates a new home with us.”

Amidst the closures, Pet Valu remained open and ready to serve consumers through the closing process, but consumers were unable to place new orders online. After Pet Valu closed the company’s US stores, Pet Supplies Plus subsequently acquired 40 of the closed locations spread across the mid Atlantic, specifically in Indiana, Kentucky, Maryland, New Jersey, Ohio, Pennsylvania and Virginia.

In the summer of 2021, Pet Supermarket was able to officially and legally separate from its counterpart, Pet Valu as Pet Retail Brands was dissolved, and Pet Valu closed all its US stores. According to media reports, the transition had already started when Pet Supermarket was run by a different leadership team than Pet Valu in 2020.

“As of IPO on June 30, 2021, we fully, legally separated from the Pet Valu and Pet Supermarket business,” said Pet Valu President and CEO Richard Maltsbarger. “The Pet Supermarket business is now fully independent. We placed a new leadership team in summer of 2020, naming a new CEO in September 2020, and so we really had been operating separately since later summer of last year, and now have fully separated.”

Aside from separating from Pet Valu, Pet Supermarket has been focused on opening new locations in South Carolina under the leadership of its current CEO, Allen McClard.

In November 2021, Pet Supermarket opened its third location in Greenville, SC, which according to officials, has a primary focus on on-site cat adoptions and the supplies to care for their well-being.

The newly independent Pet Supermarket holds a leading position among independents in several major markets.

Starting the new year off, there are 23 Pet Supermarket stores in Miami, taking about 19.66 percent of the market share. In the Atlanta market, there are 161 pet specialty locations, and Pet Supermarket takes up 10.56 percent of the market with 17 locations. The company has 16 locations in Orlando and takes up 14.55 percent of the market share. With Florida holding several Pet Supermarket locations, there are 15 stores in Tampa taking up 12.88 percent of the market. The state of Texas also has several locations with eight in Houston and six in Dallas.

In light of the 2020 lockdowns, Pet Supermarket dedicated its time and resources to ensure the health and well-being of its associates and consumers. The company implemented several protocols over the year such as upgrading its e-commerce solutions to include home delivery options and temporarily closing self-service dog wash stations. McClard has been with the company since May 2020 after taking a break from the pet industry. Before becoming CEO,

“For more than four decades, we’ve cared for the everyday needs of all McClard was the SVP types and sizes of pets, and we take great pride in being a company that and CMO of GNC from continues to grow and evolve to provide our customers the very best June 2017 to April when it comes to their pets.” — Allen McClard, CEO, Pet Supermarket 2020. Steve Jensen was named vice president of Retail by Pet Supermarket in 2021. Jensen, who has more than 20 years of expertise in retail operations and sales, oversees all retail store operations. “Steve is a self-starter with the ability to recognize and overcome barriers to operational excellence,” McClard said in media reports. “His experience sets him up for success with Pet Supermarket and our growth plans.” VP of Merchandising Daphene Whitney has been with the company since January 2021 and has more than 14 years of retail experience. Before receiving her role at Pet Supermarket, Whitney worked at Macy’s for 14 years in various positions. Whitney started as a District Planner at Macy’s and moved up to become the Senior Director of Merchandise Execution and Field Planning. Whitney has experience in buying, planning, inventory management, merchandise execution, localization strategies, training and talent management. In 2021, the company continued its efforts to give back to local communities through a campaign focusing on how retailers can better serve pets and their owners. The campaign includes a new brand identity to demonstrate to pet parents that the company is there to support them in any way possible. The campaign coined the phrase, “We Speak Pet” as its new slogan to further emphasize its reliability. “For more than four decades, we’ve cared for the everyday needs of all types and sizes of pets, and we take great pride in being a company that continues to grow and evolve to provide our customers the very best when it comes to their pets,” McClard said in media reports.