Walmart opens five more veterinary and pet care centers

Walmart close it Doctor’s office for people. But the nation’s largest retailer is expanding its pet care business.

On Tuesday, the company announced it would open five more pet services centers in October and early November. The new locations in Arizona and Georgia will include veterinary care and grooming services. Walmart opened the first pet service center last year in the Atlanta area.

Kaitlyn Shadiow, vice president of pet merchandising for Walmart US, said Walmart’s pet category is an attractive growth opportunity because it drives frequent purchases, resonating with customers of all ages. age and tends to maintain even when customer budgets are strained.

Walmart’s pet service centers will have separate entrances next to the store. They will carry the Walmart name but be staffed by pet products and veterinary care company PetIQ. The centers will provide routine veterinary care, such as wellness exams, vaccinations and minor medical services, as well as grooming for dogs and cats.

Shadiow said Walmart decided to expand after seeing strong visitation and repeat rates at its first pet services location. She said about 25% of customers have never bought pet supplies at Walmart before. And when shoppers come into the store for veterinary or grooming services, Shadiow said it creates a “halo effect” that boosts sales of pet food and other supplies.

“If you think about pet services, it’s a business opportunity,” she said. “We already serve the needs of so many pet parents today, and this is a great opportunity for us to help do that in one convenient location or trip.”

Other factors could boost Walmart. tough And Petco Have also expanded into pet services, with specialty retailer Petco using its stores to become a major veterinarian supplier. These services are more profitable than pet food but are needed more often than other supplies like leashes, pet beds, and crates.

Pet ownership has skyrocketed during the Covid pandemic, leading to more household spending on dogs, cats and other animals, and greater demand for veterinarians. According to estimates, annual household spending on pets is expected to reach $1,445 per pet in 2026 and $1,733 in 2030. a recent survey by Morgan Stanley Research. The company found that would represent a 113% increase in total industry spending from $122 billion in 2019 to $261 billion in 2030.

Walmart has seen other signs of high demand. Veterinary telemedicine provider subscription Pawp has been used more than any other limited-time offer for Walmart+, the retailer’s membership program and the answer to Amazon Prime, according to Venessa Yates, senior vice president and general manager of Walmart+. Starting next week, everything will change Limited time offer into a long-term benefit.

Pet category is also available Shadiow said this is a way to reach younger and more affluent shoppers. Gen Z is the fastest growing segment for Walmart’s pet category as the group moves toward pet ownership, she said. She said the number of customers shopping the pet category with household incomes over $100,000 increased 36% year-over-year, as of the end of July.

Walmart announced earlier this year that will close all 51 health care clinics for people — a major turnaround for the company, based on a “challenging reimbursement environment and escalating operating costs.” Clinics offer doctor visits, dentist appointments and treatments at a lower cost.

Walmart also shuttered a human telehealth provider it acquired for an undisclosed sum in 2021. It tested the pet service concept in Dallas, Georgia, where they opened their first health clinic for everyone in 2019.

However, Shadiow said pet care is a simpler and more profitable business. She said fewer people are paying for pet care through insurance, and the centers themselves may be smaller. People want transparent pricing because they often pay out of pocket. Additionally, she said, Walmart is a one-stop shop for customers who need related products, such as medicine or pet food.

“We feel a lot more confident about the ability of this to be successful over the long term,” she said.

– CNBC Gabrielle Fonrouge contributed to this report.