Rosalind Evans
Walmart is venturing into pet care by inaugurating a specialized pet services center in Dallas, Georgia. This move demonstrates the retail giant’s intention to become a go-to destination for regular grocery shopping and veterinary and grooming services for pets.
This initiative is an extension of Walmart’s established pet-related product offerings, which have been a part of its inventory for several years, including its private-label dog food, Ol’ Roy.
This unique center in Dallas, Georgia represents Walmart’s entry into the profitable segment of pet health care and other related services. Notably, Walmart has already incorporated major pet medications within its pharmacy aisles.
In collaboration with pet care company PetIQ, the new pet center will operate adjacent to a Walmart store. It’s worth noting that PetIQ has previously established vet clinics within 65 Walmart locations since their first in 2016.
Kaitlyn Shadiow, Walmart U.S.’s Vice President of Merchandising for Pets, highlighted that this Georgia-based facility is an experimental step. However, based on its success, Walmart has aspirations to inaugurate additional centers, potentially even within the upcoming year.
Highlighting the significance of pet services, Shadiow referred to a study by Morgan Stanley which showed nearly 40% of pet industry revenues come from services. Given the increasing amount Americans spend on their pets, estimated at $136.8 billion last year alone, retailers eagerly try to get a share of this expanding market.
The increasing pet expenses include not only food or vet bills but also luxury accessories. Retailers like Kohl’s and Lowe’s have also made inroads into the pet industry, capitalizing on the ever-growing demand.
However, challenges like rising inflation have made some pet owners more price-conscious. Walmart hopes its reputation for affordability will give it an edge in this market, just as it has in its grocery business.
Walmart’s newly introduced pet center will offer diverse veterinary and grooming services, with prices ranging from $15 for nail trims to a comprehensive $97 package including physical exams, vaccines, and parasite screening.
Walmart’s dive into the pet market also includes a new subscription service for routine orders like pet food, taking inspiration from Chewy’s business model. Walmart’s membership program, Walmart+, has integrated pet-focused benefits, including complimentary access to the pet telehealth service, Pawp.
Yet, the challenge remains for Walmart to solidify its footing in this new venture. Reflecting on Walmart’s efforts to integrate health services for humans, with the establishment of its health clinics in 2019, the journey hasn’t been without hurdles. Only 1% of Walmart’s 4,500+ U.S. locations are expected to have health centers by the end of 2023.
The strategic location of Walmart’s pet service center is designed to encourage customers to explore other in-store purchases. A limited retail section within the center will offer Walmart’s in-house pet products. Additionally, patrons utilizing the vet or grooming services can leave their pets in the care of PetIQ staff while they shop in the main store.
In an age where pets are increasingly seen as family members, Walmart’s move into the comprehensive pet care sector illustrates a blend of strategic foresight and adaptability. As the retail giant continues to diversify its offerings and cater to a broader range of customer needs, its success in the pet market will be a crucial indicator of its ability to tap into niche markets and remain relevant in a rapidly evolving retail landscape.
