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Author Topic: PetSmart thrives selling hotel services  (Read 3204 times)
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3catkidneyfailure
Guest
« on: February 09, 2008, 08:29:14 AM »

Why didn't PetSmart care this much when it was selling me poison food?

http://www.nytimes.com/2008/02/09/business/smallbusiness/09interview.html?_r=1&ref=business&oref=slogin

Company Thrives Offering Hotel Services (and Day Care) for Pets - New York Times
February 9, 2008
Saturday Interview
By JUSTON JONES

Being treated like a dog may not be such a bad thing if being pampered is part
of the deal. Philip L. Francis, the chairman and chief executive of PetSmart,
says his company had found that many pet owners want just that kind of treatment
for their pets.
Mr. Francis, 61, says PetSmart is benefiting from what he calls “the
macronization of the humanization of pets.” The company is growing by selling
services like day care and hotel accommodations for pets. Mr. Francis spoke
recently about those services and last year’s pet food recalls. Following are
excerpts:
Q. Your sales are now surpassing $1 billion every quarter. You reported more
than $4.23 billion in sales in your last fiscal year. Four years ago, your
annual sales were $2.70 billion. Is that growth coming from opening new stores
or selling more merchandise?
A. First, it is new stores; we have been opening about 100 stores a year. We
just opened our 1,000th store a few months ago.
And we are growing our services business at faster than 20 percent per year, and
we are selling more merchandise at both new and existing stores. More than 10
percent of our total sales are now coming from services. We are finding an unmet
demand that we are meeting, like for example, pet hoteling. In the late ’90s,
services were about 3 percent of sales.
Q. How many new hotels do you have planned for 2008?
A. We opened 35 in the current fiscal year, and we plan more than that in the
next fiscal year.
Q. What kind of services does a PetsHotel offer that a kennel or a vet’s office
doesn’t?
A. We have a morning snack, which is dairy-free frozen yogurt. An afternoon
Yappy Hour. We’re testing what we refer to as Pawsidential services, which can
include bedtime stories, belly rubs and other services that allow pet guests
added one-on-one time with our associates.
We have Doggie Day Camp for all our hotel guests. The dogs go to supervised play
time throughout the day.
We have a phone booth. The owner can call in, and your “friend” can meow or bark
at you. It’s a speakerphone, so if the human is in tough shape and needs to hear
from their dog, we can respond to that need.
Our guests drink filtered water. We turn the air over every few minutes. We have
suites that include a cot with a fleece blanket and a television turned to
Animal Planet.
People are thrilled to have the choices. It’s kind of a guilt reliever for the
human who has to abandon their pet for a short time.
Q. Last year, your company recalled several varieties of dog and cat foods. How
is that going to affect your year-end results?
A. What I can tell you is that the recall impacted less than 3 percent of the
items we carry. Because we experienced more than 13 recalls over a seven-week
period, the headlines created confusion and some fear. Even though there were
relatively few pet deaths from tainted food,
which was primarily the wet
variety, people were still left with a sense of distrust of pet food.
We had a return policy, no questions asked, even if the customer didn’t buy the
food from our store. We did some brand building by doing everything right, by
not focusing on the short term.
Q. Your company’s share price is near its 52-week low. Granted, the broader
market is extremely volatile, but how are you keeping the confidence of your
investors?
A. We’re trying to run a good business for the long term. I think they know we
operate in a good industry and have a good business model.
Q. When you hear that headline, “Leona Helmsley Leaves Trouble, Her Maltese, $12
Million,” what comes to mind?
A. I wish she had spent the $12 million on spay/neuter/adoption instead of just
on one dog.
An audio slide show of a PetSmart hotel can be found at nytimes.com/business.



 
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3catkidneyfailure
Guest
« Reply #1 on: February 09, 2008, 10:55:29 AM »

Mr. Francis, what I want to know is what PetSmart has done to protect the consumer
from all the rotten suppliers? Where's that story? I give Wal-Mart no credit, but have
you adopted GFSI if you care so much? Tell me something that might make me think
you are not going to sell poison pet food again.
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JanC
Guest
« Reply #2 on: February 10, 2008, 06:39:38 AM »

If you can't keep a dog safe who is just in your store to be groomed, who would trust you to take their dog while they go away for a few days?  Not me but thanks anyway.
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kittylyda
Hero Member
*****
Posts: 1186



« Reply #3 on: February 13, 2008, 03:08:43 PM »

If you can't keep a dog safe who is just in your store to be groomed, who would trust you to take their dog while they go away for a few days?  Not me but thanks anyway.

Right, I have read several articles in the past few months about dogs getting either injured or loose why being groomed at a Petsmart.  I think in one case a dog actually died at a grooming appointment.

Also, I read this below about a Petsmart Hotel employee beating a dog.

http://consumerist.com/consumer/cruelty/petsmart-employee-beats-dogs-keeps-job-318626.php
« Last Edit: February 14, 2008, 06:51:44 AM by kittylyda » Logged
lesliek
Hero Member
*****
Posts: 11150


Trooper,Remy & Fragile


« Reply #4 on: February 13, 2008, 07:07:51 PM »

If you can't trust them for safe food, why would anyone let them groom or board a dog or cat ?
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"the world's most inept extortionist"
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