Dive Brief:
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Around 40 former Pet Valu locations will reopen as Pet Supplies Plus after an announced acquisition.
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Some of the stores, located in Indiana, Kentucky, Maryland, New Jersey, Ohio, Pennsylvania and Virginia, will open as early as January 2021, according to a company press release.
- Pet Valu in November announced it was winding down its U.S. operations, including shuttering nearly 360 stores, warehouses and a corporate office.
Dive Insight:
After lasting impacts brought on by the pandemic proved too much for Pet Valu, some locations — and jobs — will be spared, albeit under a new name.
Pet Supplies Plus said that through the acquisition of the 40 stores, "many jobs will be saved that might otherwise be lost." The company also said the former Pet Valu stores will be a mix of corporate and franchisee-owned locations and will add to Pet Supplies Plus' more than 500 locations in 35 states.
The announced acquisition comes after a "record-breaking growth year," Pet Supplies Plus said in the release. The retailer has also experienced increased demand for franchising opportunities, and it plans to open around 100 new stores in 2021, which includes the 40 former Pet Valu locations, more than doubling the number it opened in 2020, according to Nick Russo, senior vice president of franchising and store operations for Pet Supplies Plus.
Retailers in the category have largely benefited from the pandemic as consumers turn to pets for comfort during times of uncertainty. Pet adoptions have been on the rise since the start of the pandemic, which has confined many consumers to their homes. The number of U.S. households with pets is expected to grow some 4% this year, according to data from Packaged Facts.
Online pet retailer Chewy has notched some of its best results this year, with its active customers reaching 17.8 million in the third quarter, while it reported "record" net sales of $1.8 billion during the period, a 45% year-over-year increase. And Petco and BarkBox parent Bark announced earlier this month they each plan to trade publicly on the stock market.
