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Is pet store "recession-proof"?

January 16th, 2009 · No Comments

I live in a master planned community. As more and more people move into the community, several new stores opened in the past year, including a gourmet pizza shop, an independent coffee shop, a hair salon, a kid music studio, and a high-end pet store.

Although I enjoyed the convenience of having these stores within walking distance, I was concerned about the viability of these businesses. The economy is tanking. I start to see foreclosures in our community. Most of these shops are positioned as "high end" products and services with high price points. Plus, the location was not that great.

In the past three months, the gourmet pizza shop and the coffee shops have gone out of business. It was sad. They both offered excellent products and services, but they were expensive.

I was a little bit surprised because I thought the pet store would go out of business first. It sells "designer pet product" at a high premium. It also offers personalized "pet bath/shower" facility. I thought their premium pet product/service would suffer in this economy.

So far, it seems that the pet store is doing better than all of the other stores. People are tightening their belts, but they’re still spending money on their pets! After thinking about it — it makes a lot of sense. Just like parents will sacrifice themselves for their kids, pet owners would make the necessary sacrifices to keep their pets happy and comfortable.

I wouldn’t say pet store is 100% recession proof, but I think the pet business will fare better during recession than a lot of other businesses. I’m curious if there is any industry research numbers that back up my assumption. It’d be interesting to know.

Tags: Beat Recession

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