Pandemic boom in demand for puppies and kittens ‘is over’, says Pets at Home boss

By EMILY HAWKINS

Updated: 22:12 BST, 28 May 2025

The boss of Pets At Home has said that a pandemic boom in demand for puppies and kittens is over as the company warned weak demand is not expected to recover soon.

Chief executive Lyssa McGowan pointed to ‘normalising levels of new pet ownership’ after a ‘massive’ Covid-driven increase faded.

This ‘feels like a real headwind’ for the FTSE 250 business as puppy and kitten owners tend to ‘spend a lot of money in retail in the first year,’ McGowan added.

The number of new cat and dog owners is not growing at such a rapid rate.

‘We are lapping years of boom with – not quite bust – but much lower growth and stabilisation,’ she said.

Pets At Home reported revenues little changed at £1.48billion while profits rose 14 per cent to £121million, as it warned consumer confidence would continue to be ‘subdued’ this year.

Falling demand: Pets at Home chief exec Lyssa McGowan pointed to ‘normalising levels of new pet ownership’ after a ‘massive’ Covid-driven increase faded

But McGowan said she was hopeful the group would be able to boost sales of products for ageing pets, such as salmon oil or supplements which help with aching joints.

And a record number of owners signed up to its loyalty scheme, with members rising 5 per cent to 8.2million.

Labour’s Budget has also piled £18million in annual costs onto the business, contributing to an 11 per cent decline in its share price since the October statement. 

Higher costs include National Insurance Contributions and minimum wage increases, which McGowan described as ‘significant and unexpected’.

In response, the business is increasing its use of automation and artificial intelligence across its 450 stores and distribution hubs.

McGowan would not be drawn on whether this would mean fewer jobs.

And the chief executive warned that the looming threat of a cyber attack was now ‘the new normal’ after high-profile episodes involving retailers such as Marks and Spencer.

‘Of course it concerns me, it would concern every retail chief executive in the UK and world right now,’ she said.

‘Clearly there has been a focus on this industry and we are extremely vigilant. I don’t think it is going away.’

Retail sales slumped 1.8 per cent to £1.3billion for the year to March 27. In contrast, its veterinary services division saw sales improve by 16.8 per cent to £175million.

McGowan also admitted that the group faced ‘ongoing uncertainty’ from an investigation by the Competition and Markets Authority (CMA) into the veterinary sector.

DIY INVESTING PLATFORMS

AJ Bell

AJ Bell

Easy investing and ready-made portfolios

Hargreaves Lansdown

Hargreaves Lansdown

Free fund dealing and investment ideas

interactive investor

interactive investor

Flat-fee investing from £4.99 per month

InvestEngine

InvestEngine

Account and trading fee-free ETF investing

Trading 212

Trading 212

Free share dealing and no account fee

Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.

Compare the best investing account for you

:
Pandemic boom in demand for puppies and kittens ‘is over’, says Pets at Home boss

***
Read more at DailyMail.co.uk