PetSmart Continues to Gain Traction

Dec.16.08 | About: PetSmart, Inc (PETM)

Among pet supply retailers, PetSmart Inc. (NASDAQ: PETM) continues to gain traction at the expense of rival PETCO. The average PetSmart customer shopped at the store 1.44 times in November, compared to only 1.28 in November 2007, an increase of more than 12%. By comparison, PETCO has suffered a 1% drop from 1.26 visits per customer in November 2007 to 1.25 visits per customer this year. This data was compiled by Geezeo's Main Street Spending Index (MSSI).

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Both pet supply businesses have seen customers' spend per visit decline by approximately 2% since November 2007, because of the increased visits per customer, PetSmart has seen a 10% increase in average customer spending per month from $49.55 to $54.43, while PETCO has seen a 3% decrease from $45.21 to $43.89.

PETCO's dropoff has been especially steep in November, as spend per customer declined 18% from October's $53.44 to $43.89.

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