Competition from online retailers ‘first challenge’ for new Pets at Home CEO

Retail group Pets at Home has appointed its new chief exec.

Peter Pritchard, formerly the firm’s head of retail, took over as CEO today (April 27) from outbound boss Ian Kellett.

In November last year, Pets at Home confirmed Kellett’s plans to step away from the business.

According to one analyst, top of Pritchard’s agenda will be to put the brand in a strong position to compete with online retailers.

Russ Mould, investment director at Salford stockbroker AJ Bell, commented: “It’s the first day in the top job for Peter Pritchard who has become the new chief executive of troubled retailer and services provider Pets at Home.

“Shares in the company fell on his appointment last November, perhaps in disappointment that the company didn’t hire an external candidate with fresh ideas. However, the news did coincide with half year results showing an 11% drop in underlying pre-tax profit.”

He continued: “Mr Pritchard is an internal promotion and used to be CEO of Pets at Home’s retail business. His first challenge is to find a way to cope with growing competition from online players, general merchandisers and supermarkets.”

Speaking further, AJ Bell’s Russ said: “Shares in Pets at Home have fallen by 37% in value since the company joined the stock market four years ago. Why? Well, it has been losing sales to rivals, particularly in food.

“Cats, dogs and other pets may be classified as non-discretionary spend, given how we are a nation of animal lovers and will do anything to keep our furry friends happy, but consumers are likely to still shop around for bargains if they can save a few quid.”

With Pets at Home having rejigged its prices last year, Russ added, Pritchard now “needs to win back any lost custom and drive up sales volumes”.