Progressive Grocer

FEB 2017

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the past three years. More specifically, super-premium pet foods were the dominant driver of growth across both channels, generating $336 million and $358 million, re- spectively, in incremental sales over the past five years, the Cambridge Group report shows. In even better news for retailers, the category demon- strates no signs of waning. Size $ MM 2016 Incr. Sales $ MM 2012-2016 CAGR Super-premium Cat Food-Dry $534 $46 2% Cat Food-Wet 219 150 34 Dog Food-Wet 1,475 361 7 Dog Food-Dry 400 171 15 Total $2,628 $728 8 Premium Cat Food-Dry $1,524 $102 2% Cat Food-Wet 1,746 103 2 Dog Food-Wet 2,475 -318 -3 Dog Food-Dry 1,042 82 2 Total $6,769 -$31 0 Value Cat Food-Dry $261 -$59 -5% Cat Food-Wet 126 -23 -4 Dog Food-Wet 1,065 -145 -3 Dog Food-Dry 164 -36 -5 Total $1,616 -$263 -4% Super-premium is Leading Growth Source: Five-year Nielsen Scantrak POS data, xAOC, 52 weeks ending April 2, 2016 February 2017 | | 97 "We see no indications that this growth trajectory will flatten or slow in the near future, as studies show consumers have increasing willingness to spend on healthier food options for both themselves and their pets," the report says. Retailers who want to capitalize on this "willingness to spend" must make sure that inventory aligns with demand. "e right assortment and experience matter enormously in the pet aisle," the report notes. To succeed in implementing a new approach to pet care, retailers must move away from standard, tradi- tional merchandising strategies and embrace pet care as a department instead. Joyce suggests improving merchandising in ways that illustrate how your assortment has shifted to include more premium products, and creating a store-within- a-store for the pet category. "at requires the highest investment, but has the highest potential return," he says of the store-within-a-store concept. Whatever the approach, investing in pet care has the potential to substantially boost sales and profits. "Everything from presenting pet solutions and bundling products to creating cross-sell opportunities could offer growth potential of two to four times what is realized today," the Cambridge Group report asserts. PG

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